A Monopolist Who Has a Horizontal ATC Schedule and Perfectly

question 389

Multiple Choice

A monopolist who has a horizontal ATC schedule and perfectly price discriminates

• A) leaves buyers a decreased but still positive amount of consumer surplus.
• B) increases the amount of consumer surplus that is lost to the buyers and not gained by the monopolist.
• C) appropriates all consumer surplus as profit.
• D) does not change the amount of consumer surplus that buyers had before the monopolist perfectly price discriminated.

---

Definitions:

Retina

A layer of cells at the back of the eye that senses light and converts it into neural signals, which are sent to the brain for visual recognition.

Fovea

A small depression in the retina of the eye where visual acuity is highest due to the concentration of cones.

Cones

Photoreceptor cells in the retina of the eye responsible for color vision and functioning best in relatively bright light.

Rods

Photoreceptor cells in the retina of the eye that are sensitive to low light levels and contribute to black-and-white vision.