Successful price discrimination requires that a

111. Successful price discrimination requires that:
A) Buyers with inelastic demand be charged higher prices than buyers with elastic demand
B) Buyers with inelastic demand be charged lower prices than buyers with elastic demand
C) All buyers be charged the same price regardless of their elasticity of demand
D) All buyers have the same price elasticity of demand
Answer: A
Topic: Price Discrimination
Difficulty: 2 Medium
Learning Objective: 13-04
Bloom’s: Level 1 Remember
AACSB: Analytic
[QUESTION]
112. Consumers who clip and redeem discount coupons:

[QUESTION]
113. Electric utilities generally charge higher prices for electricity used for illumination and
lower prices for electricity used for heat. These lower prices for electric heat result primarily
from:
[QUESTION]
114. If a price-discriminating monopolist sells the same product in two markets but charges a
higher price in market X and a lower price in market Y, the pricing difference indicates that
demand is:
Regulated monopoly

Reference: 13-115
Use the following to answer question 115:
[QUESTION]
115. Refer to the above cost and demand data for a pure monopolist. Suppose that this monopoly
is subjected to a regulatory commission. If the commission seeks to achieve the most efficient
allocation of resources for this industry, it should set it’s the socially optimal price at:
A) P
1
B) P
2
C) P
3
D) 0
Answer: B
Topic: Regulated Monopoly
Difficulty: 3 Hard
Learning Objective: 13-03
Bloom’s: Level 3 Apply
AACSB: Analytic
Refer To: 13-115
[QUESTION]