Suppose a monopolist offers a $20 mail-in rebate on an item with a list price of $100. In order for the rebate to be a perfect hurdle, it must be the case that:
A. buyers use the rebate if and only if their cost of filling out the rebate is less than $20.
B. all buyers with a reservation price greater than $80 use the rebate.
C. some buyers with a reservation price greater than $80 use the rebate.
D. buyers use the rebate if and only if they have a reservation price between $80 and $100.
Answer: D
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