Which of the Following Occurs with Both Perfectly Price-Discriminating and Single-Price

question 60

Multiple Choice

Which of the following occurs with both perfectly price-discriminating and single-price monopolies?

• A)The amount of output is inefficient.
• B)All consumer surplus goes to the monopoly.
• C)Deadweight loss is created.
• D)There is a redistribution of consumer surplus to the monopoly.
• E)Demand is perfectly elastic.

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Definitions:

Book Values

The net value of a company's assets, as recorded in its financial statements, minus its liabilities and intangible assets.

Market Value

The estimated amount for which an asset or company could be sold on the open market.

Retention Ratio

The portion of a company's earnings that is not distributed as dividends but is retained by the business for reinvestment.

Retained Earnings

The portion of a company’s net profits that are kept within the company instead of being paid out to shareholders as dividends.