Which of the Following Statements Regarding Perfect Price Discrimination Is

question 342

Multiple Choice

Which of the following statements regarding perfect price discrimination is false?

• A) Perfect price discrimination is charging different prices to different buyers.
• B) Perfect price discrimination is an attempt by monopolists to capture consumer surplus as profit.
• C) Perfect price discrimination can eliminate the deadweight loss to society of a monopoly.
• D) Perfect price discrimination yields the same market price and output result as perfect competition.

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Definitions:

Direct Transfers

The process of moving assets or capital directly between parties without the use of an intermediary.

Maturities

The dates on which the principal or face value of a debt instrument becomes due and is to be paid to investors.

Capital Market Securities

Financial instruments such as stocks and bonds that are traded in capital markets and represent long-term funding sources for corporations and governments.

Money Markets

Markets where short-term financial instruments and securities are traded, facilitating the lending and borrowing of funds with maturities of one year or less.