If a Single-Price Monopolist and a Perfectly Price-Discriminating Monopolist Face

question 76

Multiple Choice

If a single-price monopolist and a perfectly price-discriminating monopolist face the same demand and cost curves, then

• A)the single-price monopolist will attain resource-allocative efficiency, but the discriminating monopolist will not.
• B)the single-price monopolist will attain resource-allocative efficiency, but the discriminating monopolist may or may not, depending upon the demand for its product.
• C)the single-price monopolist will not attain resource-allocative efficiency, but the discriminating monopolist will.
• D)both the single-price and the discriminating monopolist will attain resource-allocative efficiency.
• E)neither the single-price nor the discriminating monopolist will attain resource-allocative efficiency.

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Definitions:

Nonunion Firms

Companies or organizations where the workforce is not represented by a labor union, often resulting in different working conditions compared to unionized settings.

Foreign Producers

Companies or individuals located outside a given country that produce goods or services for that country's market.

Union Wages

Wages negotiated by labor unions on behalf of their members, often resulting in higher pay and better work conditions compared to non-unionized workers.

Right-To-Work Laws

Laws that prohibit union shops, the requirement that employees must join a union as a condition of employment. Each state has the option to adopt (or reject) right-to-work legislation.