If a Perfectly Competitive Firm and a Perfectly Price-Discriminating Monopolist

question 166

Multiple Choice

If a perfectly competitive firm and a perfectly price-discriminating monopolist face the same demand and cost curves, then

• A)the competitive firm will attain resource-allocative efficiency, but the monopolist will not.
• B)the competitive firm will attain resource-allocative efficiency, but the monopolist may or may not, depending upon the demand for its product.
• C)the competitive firm will not attain resource-allocative efficiency, but the monopolist will.
• D)both the competitive firm and the monopolist will attain resource-allocative efficiency.
• E)neither the competitive firm nor the monopolist will attain resource-allocative efficiency.

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