Asked by Mojarai Johnson on Jun 20, 2024

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A price discriminating pure monopolist will attempt to charge each buyer (or group of buyers) :

A) different prices to compensate for differences in the characteristics of the product.
B) the same price if per unit cost is constant for each unit of the product.
C) that price that equals the buyer's marginal cost.
D) the maximum price each would be willing to pay.

Price Discriminating

It involves charging different prices for the same product or service to different consumers, based on the willingness to pay, often to maximize sales and profits.

Pure Monopolist

A single seller in a market that produces a unique product without close substitutes, controlling the market price.

Marginal Cost

The cost incurred by producing one additional unit of a product or service.

  • Analyze the framework of price discrimination, including its necessary conditions and eventual results.
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Isaac AzoutJun 26, 2024
Final Answer :
D
Explanation :
A price discriminating pure monopolist will attempt to charge each buyer the maximum price they would be willing to pay in order to maximize their profits. This allows the monopolist to extract the most value from each buyer, rather than charging a flat price that may not fully capture the value that some buyers are willing to pay.