Which of the Following Statements About Perfect Price Discrimination Is

question 33

Multiple Choice

Which of the following statements about perfect price discrimination is FALSE?

• A) Perfect price discrimination will lessen losses or raise profit for the monopolist.
• B) Buyers pay their reservation price for the good.
• C) Total economic surplus is maximized.
• D) Practicing perfect price discrimination means the monopolist is setting marginal revenue equal to marginal cost.
• E) Consumer surplus is zero.

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