For a Monopoly Able to Practice Perfect Price Discrimination, the Market

question 19

Multiple Choice

For a monopoly able to practice perfect price discrimination, the market

• A)supply curve is horizontal.
• B)supply curve is the same as the marginal revenue curve.
• C)demand curve is the same as the marginal cost curve.
• D)demand curve is the same as the marginal revenue curve.
• E)demand curve is horizontal.

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Definitions:

Subsidy

Financial support provided by the government to businesses, individuals, or other entities, aimed at promoting economic activities or ensuring the affordability of basic goods.

Tariffs

Taxes imposed by a government on imported goods in order to protect domestic industries or to generate revenue.

Quotas

A quota is a government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specified period.

Free Trade Agreements

Treaties between two or more countries to establish a free trade area, where commerce is conducted without tariffs or restrictions.