In order to be able to price discriminate and maximize profit, a monopolist must be able to do all of the following EXCEPT
A) identify and separate different buyer types.
B) sell a product that cannot be resold.
C) identify competitors.
D) determine the output where marginal revenue equals marginal cost.

Question

Quizplus · Accepted Answer

A monopolist does not need to identify competitors to price discriminate, as price discrimination focuses on charging different prices to different consumers based on their willingness to pay, not on competition.

In Order to Be Able to Price Discriminate and Maximize