At the Current Price of a Good,Al's Consumer Surplus Equals

question 33

Multiple Choice

At the current price of a good,Al's consumer surplus equals 8,and Ben's consumer surplus equals 15.By using two-part pricing,a monopolist could increase his profit by

• A) 8.
• B) 16.
• C) 15.
• D) 30.

---

Definitions:

Cost-benefit Analysis

Cost-benefit analysis is a process used to evaluate the total anticipated cost of a project compared to the benefits in order to determine the best course of action.

Outsourcing

The practice of hiring third parties to perform services or produce goods that were traditionally performed or produced in-house.

Productivity Losses

The decline in the effectiveness or efficiency of a workforce, often leading to a decrease in output, revenue, or service quality.

Potential Outsourcing

The possibility of transferring certain job functions or services to external providers to increase efficiency or reduce costs.