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.

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Definitions:

Palace At Knossos

An archaeological site on the island of Crete, considered Europe’s oldest city, and the ceremonial and political center of the Minoan civilization.

Minotaur

The mythical beast, half man and half bull, that inhabited the labyrinth of the Minoan palace at Knossos.

Labyrinth

A complex network of paths or passages, often designed as a puzzle or maze that is challenging to navigate.

Harvesters Vase

An artifact from the Minoan civilization featuring carved scenes of sowing, harvesting, or celebrating the harvest.