Use the Figure Below to Answer the Following Question

question 8

Multiple Choice

Use the figure below to answer the following question. Figure 12.4.1
-When perfect price discrimination occurs,which one of the following statements is false?

• A)Buyers cannot resell the product.
• B)The firm can distinguish between buyers.
• C)The firm sets prices.
• D)The firm captures consumer surplus.
• E)The outcome is less efficient than a single-price monopoly.

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Definitions:

Purely Competitive

A commercial framework with a vast number of tiny enterprises, a single type of product, freedom to enter and leave, and total transparency of information.

Allocative Efficiency

An allocation scenario where it's not feasible to enhance one person's well-being without negatively impacting another's.

Scarce Resources

Limited natural, human, and capital resources that cannot satisfy all wants and needs.

Consumer Preferences

Describes the subjective tastes and preferences of individual consumers, influencing their purchasing decisions.