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A Monopolist Sets Its Price at $100 and Offers a 10

Question 44

Multiple Choice

A monopolist sets its price at $100 and offers a 10% rebate.For this to be a perfect hurdle,it must be the case that


A) everyone takes advantage of the rebate.
B) those with a reservation price of $90 do not make a purchase.
C) no one takes advantage of the rebate.
D) those with a reservation price of $100 make the purchase and claim the rebate.
E) those with a reservation price of $100 or more make the purchase and ignore the rebate while those with a reservation price between $99 and $90 make the purchase and use the rebate.

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