In second-degree price discrimination it is true that
A. the monopolist cannot earn economic profits.
B. people who buy a lot pay a lower price.
C. people who buy relatively little pay a lower price.
D. the market need not be segmented.
Answer: B
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A firm faces a small number of competitors. This firm is competing in
A) a monopoly. B) monopolistic competition. C) an oligopoly. D) perfect competition. E) a perfect multi-firm monopoly.
Money has to be a precious metal, since precious metals have all of the important characteristics of money
Indicate whether the statement is true or false
The higher the interest rate, the more a future payment is discounted and the lower its present value
Indicate whether the statement is true or false
Government agencies often regulate the price natural monopolies charge because, if left unregulated, natural monopolies will:
A. charge a price greater than average cost. B. charge a price less than average cost. C. charge a price equal to average cost. D. face too many competitors.