Indian Institute of Technology Madras
BS Degree Programme · Examination & Study Paper
BSMS3206 · Managerial Economics
Price discrimination & monopsony
Examination Instructions & Guidelines
- Solve on notebook/paper first before checking solutions.
- MCQ: Exactly 1 option is correct. Negative marking applies.
- Scientific calculator allowed for all calculations.
- Official answer key is sealed at the end of this sheet.
End Term · 31 Aug 2025 (AN)End Term
- Q1MCQ1 Mark·Choose one option
Choose the correct alternative
- AFirst-degree price discrimination is the practice of attempting to price each unit at the consumer’s reservation price
- BOutcome in First-degree price discrimination is not Pareto efficient
- CBoth the first-degree price discrimination is the practice of attempting to price each unit at the consumer’s reservation price and outcome in First-degree price discrimination is not Pareto efficient
- DNone
Quiz 2 · 3 Aug 2025 (AN)Quiz 2
Read the passage below, then answer Q2–Q3

Based on the above data, answer the given subquestions.
Q2MCQ1 Mark·Choose one optionHow many nurses will the hospital hire as a monopsonist
- A100
- B120
- C140
- D160
- Q3MCQ1 Mark·Choose one option
What wage will it pay to a nurse
- A12500
- B13000
- C14000
- D16000
- Q4MCQ0.5 Marks·Choose one option
When a monopolist practices perfect price discrimination, it eliminates only some portion of the deadweight loss.
- ATrue
- BFalse
- Q5MCQ0.5 Marks·Choose one option
Peak load pricing is a form of price discrimination.
- ATrue
- BFalse