Which of the Following Statements Regarding a Monopoly's First-Degree Price

question 13

Multiple Choice

Which of the following statements regarding a monopoly's first-degree price discrimination is correct?

• A)With first-degree price discrimination, consumer surplus is small, yet still greater than zero.
• B)With first-degree price discrimination, producer surplus is lower than with uniform pricing.
• C)With first-degree price discrimination, deadweight loss is large.
• D)With first-degree price discrimination, total surplus is greater than when the monopoly charges a uniform price.

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Definitions:

Desirable Behavior

Actions or conduct that are encouraged, valued, or considered appropriate within a specific cultural, social, or organizational context.

Withholding Negative

The practice of not sharing negative feedback or critiques to avoid conflict or discomfort.

Positive Consequences

Results of a behavior that a person finds attractive or pleasurable.

Reinforcement

In behaviorism, a consequence applied that strengthens an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.