Refer to Figure 10- 4

question 62

Multiple Choice

Refer to Figure 10- 4.Suppose this monopolist is practicing perfect price discrimination.How does this differ from the situation where this firm is charging a single price for its product?

• A)The firm is restricting output to a level below that of the single- price monopolist,and thereby raises the price of its product and earns higher profits.
• B)The firm is producing a smaller quantity,is charging a different price for each unit sold and is earning higher profits.
• C)The firm is producing the same quantity,has successfully identified different segments of the market,and is able to capture some of the consumer surplus.
• D)The firm is producing the same quantity,but charging a different price for each unit sold and is earning higher profits.
• E)The firm is producing a higher quantity,is charging a different price for each unit sold and is earning higher profits.

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Definitions:

Mulattos

Historically, a term used to describe people of mixed European and African descent.

Ota Benga

A Congolese Mbuti pygmy who was featured in an exhibit at the Bronx Zoo in the early 20th century, highlighting human rights abuses.

Bronx Zoo

An internationally renowned zoo located in the Bronx, New York City, known for its diverse animal collection and conservation efforts.

Thrifty Gene

A hypothetical gene that is thought to predispose individuals to efficiently collect and process food to deposit fat during periods of food abundance, theoretically offering a survival advantage during times of food scarcity.