Q6. Which of the following is least likely to be considered a necessary condition for a monopolist to realize profits from price discrimination?

A)   The ability to prevent trading between customers in different price groups.

B)   Two different costs of production.

C)   A product for which the demand curve is downward sloping.

Q7. Which of the following is least accurate regarding the allocative efficiency associated with price discrimination? Price discrimination:

A)   results in gains to the discriminating firm by selling to consumers with relatively inelastic demand.

B)   leads to a decrease in allocative efficiency.

C)   leads to production where the sum of consumer surplus and producer surplus is greater than it would be otherwise.

Q8. Price discrimination is most accurately defined by which of the following? Price discrimination is the practice of charging different consumers different prices for:

A)   similar products that have different price elasticities of demand.

B)   similar products that have identical per-unit production costs.

C)   the same product or service.

答案和详解如下：

Q6. Which of the following is least likely to be considered a necessary condition for a monopolist to realize profits from price discrimination?

A)   The ability to prevent trading between customers in different price groups.

B)   Two different costs of production.

C)   A product for which the demand curve is downward sloping.

Correct answer is B)

Price discrimination works when the seller (discriminator) faces a downward-sloping demand curve and has at least two customer groups each having different price elasticities for the product. It is also necessary that trading does not occur between customer groups so that the customers paying a lower price cannot resell the product to the customers paying a higher price.

Q7. Which of the following is least accurate regarding the allocative efficiency associated with price discrimination? Price discrimination:

A)   results in gains to the discriminating firm by selling to consumers with relatively inelastic demand.

B)   leads to a decrease in allocative efficiency.

C)   leads to production where the sum of consumer surplus and producer surplus is greater than it would be otherwise.

Correct answer is B)

Allocative efficiency occurs when the quantity produced maximizes the sum of consumer and producer surplus. That is, where marginal benefit equals marginal cost. Price discrimination reduces the allocative inefficiency that exists when prices are greater than marginal cost by increasing output toward the quantity where price equals marginal cost. Firms gain by selling to customers with inelastic demand while still providing goods to customers with more elastic demand. This may even cause production to take place at a level where it would not take place otherwise.

Q8. Price discrimination is most accurately defined by which of the following? Price discrimination is the practice of charging different consumers different prices for:

A)   similar products that have different price elasticities of demand.

B)   similar products that have identical per-unit production costs.

C)   the same product or service.

Correct answer is C)

Price discrimination is the practice of charging different consumers different prices for the same product or service. Examples include different prices for airline tickets based on whether a Saturday-night stay is involved and different prices for movie tickets based on age.

答ABA

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