What is one major hurdle monopolies face to engage in first-degree price discrimination?
A. Finding everyone's willingness to pay is costly and difficult.
B. Overcoming legal conflicts to charge each person differently is costly.
C. Market research is costly and time-consuming.
D. Not every person has a maximum willingness to pay for a good.
Answer: A
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A monopoly that price discriminates ______
A. benefits buyers because it offers the good at a variety of prices B. gains because it converts consumer surplus to economic profit C. uses resources more efficiently than would a competitive market D. enables buyers to maximize their consumer surplus
In a two-good, two country world, if one country has an absolute advantage in the production of both goods, it cannot benefit by trading with the other country
Indicate whether the statement is true or false
Compared to Treasury bills, commercial paper
A) has no default risk. B) does not have much of a secondary market. C) has a lower yield. D) sells at a higher price for.
Related to the Economics in Practice on page 131: Uber drivers can choose to drive as many or as few hours as they desire, and most drivers have another job and drive for Uber as a way to supplement their income. Assuming leisure is a normal good, if Uber increased the wages it paid its drivers then the income effect would result in drivers working ________ and buying ________ leisure.
A. more; less B. more; more C. less; more D. less; less