If a Monopoly Charges Higher Prices to Consumers Who Buy

question 24

Multiple Choice

If a monopoly charges higher prices to consumers who buy smaller quantities than to consumers who buy larger quantities,then

• A) consumer surplus is larger than under single-price monopoly.
• B) social welfare is larger than under perfect competition.
• C) the monopoly's profits are larger than under single-price monopoly.
• D) the monopoly's profits are larger than under perfect price discrimination.

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Definitions:

Regulatory Changes

Modifications or updates to the rules and regulations that govern industry practices and standards.

Market Competition

The rivalry among businesses to attract customers, aiming to increase market share by offering better products, prices, or services.

Contingency Decision

Decision-making that is undertaken to address unexpected events or emergencies, typically involving alternative plans or actions.

Emergency Plan

A set of procedures designed to take action and manage responses during emergencies, aiming to mitigate harm and ensure safety.