1. Other things being equal, a price-discriminating firm will charge less to the customers who
a. have the lowest incomes.
b. have the least elastic demand for its product.
c. have the most elastic demand for the product.
d. are the most rational in making their decisions.
2. Monopolies that price discriminate do so because
a. they are able to do so and no one else can.
b. they can increase their profits.
c. it keeps them out of trouble with the government.
d. it is more efficient.