When a Monopolist Practices Perfect Price Discrimination

question 234

Multiple Choice

When a monopolist practices perfect price discrimination,

• A)consumers receive no consumer surplus
• B)there is allocative inefficiency
• C)there is a deadweight loss
• D)profit is lower than for the nondiscriminating monopolist
• E)total revenue is less than for the nondiscriminating monopolist

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Definitions:

Scientific Management

A management theory that examines and integrates work processes to enhance economic effectiveness and particularly boost labor productivity.

Geographic Region

A specific area defined by physical location, cultural identity, or administrative boundaries.

Motivator-Hygiene Theory

A theory proposed by Frederick Herzberg that suggests job satisfaction and dissatisfaction arise from two different sets of factors - motivation factors and hygiene factors.

Job Satisfaction

The level of contentment employees feel about their job, including aspects such as the nature of the work, conditions, pay, and recognition.