Consumers Who Put a High Value on a Service

question 63

Multiple Choice

Consumers who put a high value on a service

• A)are better off with perfect price discrimination.
• B)are better off under a single-price monopoly.
• C)are indifferent between perfect price discrimination and a single-price monopoly.
• D)incur deadweight loss under either single-price monopoly or perfect price discrimination.

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Definitions:

Ratio

A mathematical term defining the quantitative relationship between two numbers, showing how many times one value contains or is contained by the other.

Linear Perspective

A technique in art and photography that creates the illusion of depth on a flat surface, using converging lines to depict objects more distant as smaller.

Aerial Perspective

A technique in art and photography that uses the way atmosphere affects human perception of distance to create a sense of depth.

Motion Parallax

Motion Parallax is an optical illusion where objects closer to the observer appear to move faster than objects further away when the observer moves their head or body side-to-side.