When Price Discrimination Does Not Increase Output,it Increases a Monopoly's

question 146

Multiple Choice

When price discrimination does not increase output,it increases a monopoly's profits because it ________.

• A) increases the willingness of households to pay for a good
• B) allows the firm to capture some consumer surplus
• C) allows the firm to exploit economies of scale more fully
• D) shifts the demand curve the firm faces

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Definitions:

Marginal Utility

The additional satisfaction or utility a consumer gains from consuming one more unit of a good or service.

Competitive Equilibrium Price Ratio

The ratio of prices that ensures the equality of supply and demand in a competitive market, often used to observe relative price changes between commodities.

Utility Function

A mathematical representation expressing an individual's preference ordering over a set of goods or services, used in economics to model decision making under uncertainty.

Min

Often short for "minimum," it represents the smallest or least possible amount or degree of a certain quantity or measure.