Monopoly and Pricing Strategies Quiz

What is a key characteristic of a monopoly?

• Multiple producers in the market

• High competition

• Barriers to entry

• Low economic profits

Which pricing strategy involves charging different prices to different consumer segments?

• Uniform pricing

• Price discrimination

• Cost-plus pricing

• Penetration pricing

What is the effect of price discrimination on consumer satisfaction?

• It always decreases consumer satisfaction

• It always increases consumer satisfaction

• It can lead to varied consumer satisfaction

• It has no effect on consumer satisfaction

How does a monopoly impact income inequality?

• It stabilizes income inequality

• It reduces income inequality

• It has no impact on income inequality

• It increases income inequality

What does fair return pricing aim to achieve?

• Maximize economic profits

• Provide a reasonable profit margin

• Achieve productive efficiency

• Ensure no economic profits