Reading 19: Monopoly - LOS c ～ Q6-8 necessary, following, likely, price, least

mayanfang1

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.

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