If a Monopolist Practices Perfect Price Discrimination

question 75

Multiple Choice

If a monopolist practices perfect price discrimination,

• A)the firm will break even in the long run.
• B)consumers surplus will be equal to the deadweight loss.
• C)producer surplus will equal consumer surplus.
• D)consumer surplus will be zero.

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Definitions:

Constant

A fixed value in mathematics and science that does not change in a given context, often represented by a symbol.

Predict

The act of making an educated guess about the future based on past and present data or trends.

Lurking Variable

A hidden variable that is not measured in a study but can influence the relationship between the studied variables.

Regression Analysis

A statistical method for examining the relationship and predicting the outcome of one variable on the basis of others.