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:

Scores

Numerical data representing individual performance or achievement in a test, assessment, or experimental condition.

Average Deviation

The average difference between each data point in a set and the mean of that set.

Pearson Product-moment

A correlation coefficient that measures the linear correlation between two variables, indicating the strength and direction of a linear relationship.

Ordinal Scale

A scale of measurement where data can be ordered or ranked, but the intervals between the data points are not necessarily consistent.