Under Which of the Following Is Consumer Surplus Zero

question 238

Multiple Choice

Under which of the following is consumer surplus zero?

• A) all types of monopoly
• B) only single-price monopoly
• C) only perfectly price-discriminating monopoly
• D) only price discrimination on the basis of the number of units purchased
• E) perfect competition

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Definitions:

Days Receivable Outstanding

Days Receivable Outstanding (DRO) is a financial metric that calculates the average number of days it takes a company to collect payment after a sale has been made.

Accounts Receivable

Funds that customers owe a company for products or services that have been provided but remain unpaid.

Sales

The total amount of goods or services sold or provided to customers, generating revenue for a business.

Long-Term Debt To Assets

A ratio indicating the proportion of a company's assets that are financed through long-term debt, showing financial leverage.