In Theory, Perfect Price Discrimination

question 240

Multiple Choice

In theory, perfect price discrimination

• A)decreases the monopolist's profits.
• B)decreases consumer surplus.
• C)increases deadweight loss.
• D)reduces the number of consumers who purchase the monopoly's product.

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Definitions:

Supply And Demand Diagram

A graphical representation of the relationship between the quantities of a good that sellers are willing to sell and buyers are willing to buy, at various prices.

Negative Externality

A negative externality occurs when a product or decision costs a third party who did not choose to incur that cost.

Wooden Sculpture

A piece of art or decorative object carved from wood.

Safety Hazard

A condition in the workplace or environment that has the potential to cause harm or injury to people.