A Monopolist Who Has a Horizontal ATC Schedule and Charges

question 363

Multiple Choice

A monopolist who has a horizontal ATC schedule and charges the same monopoly price to all buyers

• A) appropriates more consumer surplus as profit than a perfect price discriminator does.
• B) appropriates less consumer surplus as profit than a perfect price discriminator does.
• C) appropriates less consumer surplus as profit than a perfectly competitive firm does.
• D) does not lower the amount of consumer surplus that buyers have compared with what they would have if instead they faced a perfectly competitive firm.

---

Definitions:

Distinctive Physical

Unique physical characteristics or features that distinguish individuals or objects from others.

National Origin

The country where a person was born or from which their ancestors came, often used in legal and demographic contexts.

Cultural Heritage

The traditions, customs, artifacts, and values inherited from previous generations, specific to a culture or society.

Ethnic Group

People who identify with a common national origin or cultural heritage.