If One Were to Compare a Competitive Market to a Monopoly

question 90

Multiple Choice

If one were to compare a competitive market to a monopoly that engages in perfect price discrimination,one could say that

• A)in both cases, total social welfare is the same.
• B)total social welfare is higher in the competitive market than with the perfectly price discriminating monopoly.
• C)in both cases, some potentially mutually beneficial trades do not occur.
• D)consumer surplus is the same in both cases.

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Definitions:

Family Business Feud

Conflicts or disputes that occur within a family-run company, often relating to leadership, succession, or financial issues.

Work Responsibilities

The specific tasks, duties, and functions assigned to an employee or a team within the workplace, expected to be fulfilled to achieve organizational goals.

Business Strategy

A plan of action designed to achieve a long-term or overall aim in the competitive marketplace.

Business Fail

A situation where a business is unable to continue its operations or achieve its financial goals, leading to its closure or bankruptcy.