Quiz for:
Understanding Price Discrimination Strategies

Question 1

Which example best illustrates first degree price discrimination?

Question 2

What type of price discrimination involves different prices for different quantities of the same product?

Question 3

What is required for a firm to successfully charge different prices to different groups in third degree price discrimination?

Question 4

For a price-discriminating monopoly, what effect does charging higher prices for higher willingness to pay have on economic profit?

Question 5

Which of the following is an example of third degree price discrimination?

Question 6

How does willingness to pay relate to elasticity of demand in price discrimination?

Question 7

In a perfectly price-discriminating monopoly, what happens to consumer surplus?

Question 8

Which degree of price discrimination is considered theoretical and maximizes economic profit by charging each consumer differently?

Question 9

What is the primary condition necessary for price discrimination to be effective?

Question 10

For a monopoly using perfect price discrimination, where does the Marginal Revenue curve lie on the graph?

Question 11

What happens to the allocative efficiency of a firm engaging in perfect price discrimination?

Question 12

What distinguishes second degree price discrimination from third degree price discrimination?

Question 13

How do firms using price discrimination typically prevent resale?

Question 14

In a single price monopoly, what is typically the profit-maximizing condition for quantity?

Question 15

In the context of a monopolistic firm, what is the significance of MR = MC?