For a Monopoly Able to Practice Perfect Price Discrimination, the Market

question 19

Multiple Choice

For a monopoly able to practice perfect price discrimination, the market

• A)supply curve is horizontal.
• B)supply curve is the same as the marginal revenue curve.
• C)demand curve is the same as the marginal cost curve.
• D)demand curve is the same as the marginal revenue curve.
• E)demand curve is horizontal.

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Definitions:

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Year 1

Refers to the first year of operation for a business or the first year of a specific reporting period.

Contra-asset

A contra-asset account is a type of asset account where its balance is a negative figure that offsets the balance of its corresponding asset account.

Liability

A financial obligation or debt owed by a company to another entity, which is expected to be settled through the transfer of assets or services.