Question : 51) A price-discriminating monopoly a monopoly that A) sells its output : 1238836

51) A price-discriminating monopoly is a monopoly that

A) sells its output at a single price to all of its customers.

B) sells different units of a good or service at different prices.

C) has control over the resources used to produce the product.

D) has a license to sell the product.

E) illegally charges different customers different prices for the good it produces.

52) Price discrimination occurs when a firm

A) charges customers different prices for different goods.

B) is able to sell different units of a good at different prices.

C) charges customers the same price for different goods.

D) can determine which of the many market equilibrium prices it will charge.

E) has a marginal cost curve that is horizontal.

53) Price discrimination is

A) always illegal in the United States.

B) defined as charging the same price to all consumers.

C) defined as charging different prices for different units.

D) setting the price to minimize the quantity sold.

E) Both answers A and C are correct.

54) A ________ monopoly sells different units of its good or service for ________.

A) price-discriminating; different prices

B) price-discriminating; the same price

C) single-price; the same price

D) single-price; different prices

E) Both Answers A and C are correct.

55) To be able to price discriminate, a firm must

A) have a public franchise.

B) be a natural monopoly.

C) be able to prevent resales of its good.

D) have a patent.

E) have an ownership barrier to entry.

56) Which of the following statements is correct?

A) Any firm can price discriminate.

B) Only firms that sell high-priced products can price discriminate.

C) In order to price discriminate, a firm must sell a good or service that cannot be resold.

D) In order to price discriminate, the firms must sell a low-priced product.

E) Price discrimination is always illegal.

57) Price discrimination is prevented in situations where

A) customers can resell the good.

B) firms have monopolies.

C) there are legal barriers to entry.

D) there are no close substitutes for the good or service.

E) customers have different willingnesses to pay for the good.

58) In order for a hotel to successfully price discriminate so that senior citizens are given a discount, the hotel must be able to

A) offset the economic loss from charging senior citizens a lower price by lowering the marginal cost of renting rooms to senior citizens.

B) lower its prices to younger customers too.

C) prevent senior citizens from reselling their rooms to younger customers.

D) shift its demand curve rightward.

E) determine if a senior citizen can pay a higher price.

59) Which of the following is an example of price discrimination?

A) UPS charges more if a package is sent from New York to Hawaii and less if it is sent from New York to New Jersey.

B) Frank’s Furniture shop charges no delivery fee for furniture delivered within Dutchess County but charges $40 delivery fee outside of the county.

C) Albert pays 25 percent less on prescription drugs because he is a senior citizen.

D) Only answers A and B are correct.

E) Answers A, B, and C are all correct.

60) Firms that can effectively price discriminate

A) can be either perfectly competitive firms or monopolies.

B) can prevent the resale of their products.

C) have only one class of buyers, buyers willing to pay a high price.

D) Both answers A and B are correct.

E) Both answers A and C are correct.