What Is the Result When a Monopolist Is Able to Price-Discriminate

question 18

Multiple Choice

What is the result when a monopolist is able to price-discriminate?

• A) Both its profits and consumer surplus tend to increase.
• B) Both its profits and consumer surplus tend to decrease.
• C) Its profits tend to increase and consumer surplus tends to fall.
• D) Its profits tend to fall and consumer surplus tends to increase.

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Definitions:

External Attributions

The act of ascribing one's own or other people's actions to outside elements or circumstances.

Internal Attributions

The process of assigning the cause of behavior to something within the individual, such as their personality or effort.

Fundamental Attribution Error

The bias of overemphasizing personal traits and underestimating situational factors when explaining other people's behaviors.

Wealthy People

Individuals who possess a substantial amount of money, assets, or resources, significantly above the societal average.