Which of the Following Statements Regarding Perfect Price Discrimination Is

question 342

Multiple Choice

Which of the following statements regarding perfect price discrimination is false?

• A) Perfect price discrimination is charging different prices to different buyers.
• B) Perfect price discrimination is an attempt by monopolists to capture consumer surplus as profit.
• C) Perfect price discrimination can eliminate the deadweight loss to society of a monopoly.
• D) Perfect price discrimination yields the same market price and output result as perfect competition.

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Definitions:

Semi-annually

Refers to an event occurring twice a year, or every six months.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the face value, to the bondholder.

Par Value

Par value is the nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate; it is a static value and not indicative of market value.

Treasury Bill

Short-term U.S. government debt obligations backed by the Treasury Department with a maturity of less than one year.