Which of the Following Statements Is True

question 99

Multiple Choice

Which of the following statements is true?

• A)Consumer surplus under perfect price discrimination is greater than under single-price monopoly pricing.
• B)Consumer surplus under an optimal two-part tariff is greater than that under single-price monopoly pricing.
• C)Although consumers reap some consumer surplus under a single-price monopoly, society is better off with optimal two-part tariff pricing.
• D)Of the three pricing schedules, single-price monopoly, an optimal two-part tariff, and perfect price discrimination, profit is highest under single-price monopoly pricing.

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Definitions:

Social Psychological

Pertaining to how individual thoughts, feelings, and behaviors are influenced by the social environment and presence of others.

Cognitive Association

The mental linking or relating of ideas, concepts, or stimuli, which plays a role in how thoughts and memories are organized.

Economic Deprivation

A state of lacking economic resources and essentials, leading to poor living conditions and limited access to goods and services.

Quick High

refers to a rapid onset of euphoria or intoxication from using certain substances, which is often short-lived and sought after by substance abusers.