Which of the Following Occurs with Both Perfectly Price- Discriminating

question 49

Multiple Choice

Which of the following occurs with both perfectly price- discriminating and single- price monopolies?

• A) The amount of output is inefficient.
• B) Deadweight loss is created.
• C) All consumer surplus goes to the monopoly.
• D) There is a redistribution of consumer surplus to the monopoly.

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Definitions:

Favorable Market

A market condition characterized by high demand, low supply, or other factors that can lead to advantageous selling or buying opportunities.

Equally Likely

A criterion that assigns equal probability to each state of nature.

Large Factory

A facility used for manufacturing or production on a large scale, often employing many workers and utilizing numerous machinery and equipment.

EMV

Expected Monetary Value; a statistical technique in decision-making that calculates the average outcome when the future includes scenarios that may or may not happen.