Use the Figure Below to Answer the Following Questions

question 60

Multiple Choice

Use the figure below to answer the following questions. Figure 12.4.2
-Refer to Figure 12.4.2.Assume this monopoly practises perfect price discrimination.Choose the correct statement.

• A)The monopoly's behaviour is illegal.
• B)One price is charged to young people and a different price to older people.
• C)A different price can be charged to each buyer.
• D)Price rises as the number of buyers increases.
• E)The quantity sold is smaller than the quantity sold by a single-price monopoly.

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Definitions:

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specific time period.

Tariff

A tax on goods produced abroad and sold domestically.

Exchange Rate

The price of one currency in terms of another, determining how much foreign currency can be obtained with a unit of domestic currency.

Net Exports

The value of a country's total exports minus its total imports, representing the net trade of goods and services with other countries.