When a Monopolist Practices Price Discrimination,compared with a Single-Price Monopolist,producer

question 33

Multiple Choice

When a monopolist practices price discrimination,compared with a single-price monopolist,producer surplus will:

• A)remain the same.
• B)increase.
• C)decrease.
• D)increase initially and then return to its original level.

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Definitions:

Net Exports

The value calculated by subtracting a country's total value of imports from its total value of exports; positive net exports indicate a trade surplus, while negative net exports indicate a trade deficit.

Import Quota

This is a restriction by a country on the quantity of a good that can be imported, aimed at protecting domestic industries from foreign competition.

Tariffs Decreased

Refers to a reduction in taxes imposed on imported goods, which can lead to increased trade between countries and potentially lower prices for consumers.

U.S. Imports

Goods and services purchased by residents of the United States that are produced in and brought from other countries.