Which of the Following Statements About Perfect Price Discrimination Is

question 13

Multiple Choice

Which of the following statements about perfect price discrimination is false?

• A)There is no consumer surplus if a firm engages in perfect price discrimination.
• B)Perfect price discrimination occurs when the seller charges the highest price each consumer would be willing to pay for the product.
• C)A condition for perfect price discrimination is that it must be costlier to service some customers than others.
• D)For the price-discriminating firm, its marginal revenue curve coincides with its demand curve.

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Definitions:

Government Intervention

Actions taken by a government to influence or directly regulate economic, social, or other activities within a country.

Socioeconomic

Pertaining to the relationship between social and economic elements.

Neo-classical

Pertaining to a 19th and early 20th-century revival of interest in classical economic theories, focusing on marginal utility, distribution of resources, and the roles of supply and demand.

Classical Economic

refers to a school of thought in economics that emphasizes the importance of free markets, competition, and the self-regulating nature of economic systems, originating mainly from the ideas of Adam Smith.