Which of the Following Statements About a Monopoly Practicing Perfect

question 71

Multiple Choice

Which of the following statements about a monopoly practicing perfect price discrimination is correct?

• A)The profit-maximizing criterion is MR = P,the same as for perfect competition.
• B)The demand curve is also the marginal-revenue curve.
• C)It will charge higher prices in those market segments with more elastic demand.
• D)The output will always be less than that produced by a single-price monopolist.
• E)Total costs will be lower than that of a single-price monopolist.

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Definitions:

Laffer Curve

An illustration of the relationship between tax rates and tax revenue, suggesting there's an optimal tax rate that maximizes revenue.

Tax Revenue

The capital governments gather through the imposition of taxes.

Tax

A compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Flexible Benefits

A program that allows employees to choose from a range of benefit options.