To practice effective price discrimination,a monopolist must be able to:
A)estimate its own production and cost functions.
B)avoid charging too low a price.
C)prevent the resale of goods among groups of buyers.
D)calculate the income level of each buyer in the market.

Question

Quizplus · Accepted Answer

Effective price discrimination requires the ability to prevent the resale of goods among groups of buyers, as this would undermine the monopolist's ability to charge different prices to different groups based on their willingness to pay. The other options may be helpful in determining optimal pricing strategies, but they are not essential to effective price discrimination.

To Practice Effective Price Discrimination,a Monopolist Must Be Able To