1.Third-degree price discrimination occurs when a monopolist sells output to dif

Question

1.Third-degree price discrimination occurs when a monopolist sells output to different people at different prices but every unit that an individual buys costs the same amount.

True

False

2.

Second-degree price discrimination charges different per-unit prices based on the the total quantity purchased by a particular customer.

True

False

3.

First-degree (perfect) price discrimination causes inefficiency.

True

False

4.

A monopolist who is able to practice third-degree price discrimination charges a higher price in the market that is more elastic.

True

False

Explanation / Answer

1. Third-degree price discrimination occurs when a monopolist sells output to different people at different prices but every unit that an individual buys costs the same amount.

** True.

2. Second-degree price discrimination charges different per-unit prices based on the the total quantity purchased by a particular customer.

** True.

3. First-degree (perfect) price discrimination causes inefficiency.

** True.

4. A monopolist who is able to practice third-degree price discrimination charges a higher price in the market that is more elastic.

** False.

*****

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.