Price discriminationGroup of answer choicescan occur in both perfectly competitive and monopoly markets.is illogical because it does not maximize profits.can maximize profits if the seller can prevent the resale of goods between customers.is illegal in the United States and Europe.

If consumers are identical, thenGroup of answer choicesprice discrimination is impossible.price discrimination can occur if each consumer has a downward-sloping demand curve for the product.perfect price discrimination is the only form of price discrimination that can increase a monopoly's profit.bundling can increase a monopoly's profit.

Perfect price discrimination isGroup of answer choicesrealistic.practiced by many firms.a purely theoretical possibility.very common.

For a firm to price discriminate,Group of answer choicesit must have some market power.it must be regulated by the government.it must be a natural monopoly.consumers must tell the firm what they are willing to pay for the product.

A monopoly will not be able to perfectly price discriminate ifGroup of answer choicesobtaining information about each buyer's reservation price is too costly.demand is very elastic.demand is very inelastic.resale is impossible.

How often do perfectly competitive firms engage in price discrimination? multiple choiceAlwaysRarelyOftenNever