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.