Explain why a price discriminating monopolist would not necessarily want to price all along the entire demand curve
What will be an ideal response?
The reason that the monopolist would not want to price all along the demand curve is because eventually the price (marginal revenue) will fall below the marginal cost.
You might also like to view...
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Marginal utility can be
A. positive, but not negative. B. positive, negative, or equal to zero. C. decreasing, but not negative. D. positive or negative, but not equal to zero.
During recessions, government spending usually
A. decrease because unemployment payments increase. B. decreases because unemployment payments decrease. C. increases because unemployment payments decrease. D. increases because unemployment payments increase.
Refer to the information provided in Figure 15.1 below to answer the question(s) that follow. Below are cost curves for Dom's Barber Shop, a monopolistically competitive firm. 
Figure 15.1 Refer to Figure 15.1. The ________ haircut is $16.
A. profit-maximizing price for a B. profit from each C. average total cost of a D. marginal cost of a