If a Monopolist Can Perfectly Price Discriminate, Then

question 270

Multiple Choice

If a monopolist can perfectly price discriminate, then

• A) it will charge just two different prices in two different markets.
• B) it will not give a discount to those who buy in bulk.
• C) the deadweight loss is larger than if it cannot price discriminate.
• D) there will be no consumer surplus.

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Definitions:

Process Costing

A cost accounting system used where production occurs through continuous processes or batches, aggregating costs over a specific period to calculate per-unit costs.

Weighted-Average Method

A method of valuing inventory and determining cost of goods sold that uses the average cost of all units available for sale during the period.

Assembly Department

Assembly Department is a specific section within a manufacturing company where components are assembled into final products.

Costs Per Equivalent Unit

A method used in process costing that assigns costs to partially completed units of production.