The Possibility of Arbitrage by Its Customers Is Loathed by the Price

Multiple Choice

The possibility of arbitrage by its customers is loathed by the price discriminating monopolist because:

A) customers enrich themselves at the expense of the monopolist's profits.
B) it is the customers that price discriminate in this case.
C) profits will be lower even though separation of markets. is preserved.
D) it encourages entry.