If a monopolist can perfectly price discriminate, it will
A) charge the same price for each unit sold.
B) produce until price elasticity of demand equals one.
C) not be concerned with the market demand.
D) charge a different price for every unit sold.
Question 2
Dan, age 19, may have trouble buying insurance at a low price because
A) the insurance company has private information that he is a risky driver.
B) the insurance company has private information that his signals are valid.
C) insurance companies fear that he has private information that his deductible is too high.
D) insurance companies fear that he has private information that he is a risky driver.
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