Compared to the Monopoly Outcome with a Single Price,imperfect Price

question 195

Multiple Choice

Compared to the monopoly outcome with a single price,imperfect price discrimination (i) sometimes raises total surplus.
(ii) sometimes lowers total surplus.
(iii) always leads to a lower quantity of output.

• A)(i) and (ii)
• B)(ii) and (iii)
• C)(i) and (iii)
• D)Any of these outcomes is possible.

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Definitions:

Fewer Resources

A situation or condition where there is a reduced availability of inputs or factors of production such as land, labor, and capital.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors.

Opportunity Cost

The expense incurred by not choosing the second-best option when making a decision or selection.

Comparative Advantage

The capacity of an entity to generate a product or service with a smaller opportunity cost than others.