If a Monopolist Engages in Ordinary Price Discrimination, the Economy

question 49

Multiple Choice

If a monopolist engages in ordinary price discrimination, the economy is:

• A)inefficient in production and consumption.
• B)inefficient in production, consumption and product- mix.
• C)inefficient in production and product- mix.
• D)inefficient in consumption and product- mix.

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Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period, leading to a rise in the country’s wealth.

Dumping

The practice of selling a product in a foreign market at a price that is below the cost of production or lower than the price in the home market.

Pet Accessories

Non-essential items for pets, such as toys, clothing, beds, and grooming products, designed to enhance the care and comfort of domestic animals.

Exports

Goods or services sold by a country or business to buyers in another country.