Author Question: A monopoly can price discriminate between two groups of consumers if each group has ________. A) ... (Read 88 times)

amal · **on:** Jun 29, 2018

A monopoly can price discriminate between two groups of consumers if each group has ________.

A) a large consumer surplus
B) a different willingness to pay
C) the same willingness to pay
D) the ability to resell the good to the other group

Question 2

What is an incentive system?

What will be an ideal response?

Dunkey · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

B

Answer to Question 2

An incentive system is a method of organizing production that uses a market-like mechanism inside the firm. Instead of issuing commands, senior managers create compensation schemes that will induce workers to perform in ways that maximize the firm's profit.