If a Monopoly Can Perfectly Price Discriminate

question 264

Multiple Choice

If a monopoly can perfectly price discriminate,

• A) all the demanders pay one price.
• B) it minimizes its profit.
• C) it produces the same amount of output as would be produced if the market was a perfectly competitive industry.
• D) it produces less output than would be produced if the market was a perfectly competitive industry.
• E) it creates the same amount of consumer surplus as would be created if the market was a perfectly competitive industry.

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Definitions:

Claiming Value

The process of maximizing one's own benefit in a negotiation or transaction.

Creating Value

The process of enhancing or increasing the value proposition of a deal or an outcome for all parties involved in a negotiation.

Conflict

A disagreement or contention between two or more parties, possibly due to differing interests, values, or goals.

Best Alternative

The most advantageous option available to a party in negotiations if the current talks fail.