Which of the following is necessary for a monopolist to price discriminate betwe

Question

Which of the following is necessary for a monopolist to price discriminate between groups? The groups are not easily identifiable. The groups all have the same willingness to pay. A customer from one group cannot resell to a customer in another group. ALL of the above conditions are necessary for the monopolist to price discriminate. In the following table is demand and cost data for a pure monopolist. Complete the table by filling in columns for total revenue, marginal revenue, and marginal cost, and then answer questions 15.16 and 17: Profit maximizing output is Profit maximizing price is Total profit is The economic inefficiencies of monopolistic competition may be offset by the fact that: resources are optimally allocated to the production of the product. advertising expenditures shift the average cost curve upward. consumers have a number of variations of the product from which to choose. available capacity is fully utilized. When firms in monopolistic competition incur an economic loss, some firms will. enter the industry and produce more products. exit the industry, and demand will increase for the firms that remain. enter the industry, and demand will become more elastic for the original firms exit the industry, and demand will decrease for the firms that remain.

Explanation / Answer

14)

All of the above conditions are necessary for the monopolist to price discriminate

because if there is no different customer to pay different prices then there will be one price, so no discrimination and also if the company is not able to identify the customers to charge high or low pricing then they might not take risk of discrimination. One most important thing is that reselling is not there, otherwise it will create issues and the company might be penalized

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