If a Monopoly Is Able to Perfectly Price Discriminate,then Consumer

question 165

Multiple Choice

If a monopoly is able to perfectly price discriminate,then consumer surplus is

• A) equal to zero.
• B) maximized.
• C) unchanged from what it is with a single-price monopoly.
• D) unchanged from what it is in a perfectly competitive industry.
• E) not zero but is less than with a single-price monopoly.

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Definitions:

Richness

The state of being abundant or plentiful, especially in terms of wealth, quality, or diversity.

Motion Parallax

A depth cue that involves the apparent relative motion of stationary objects as observed by an observer in motion.

Retinal Disparity

The slight difference in images between the two eyes due to their different positions, which contributes to binocular depth perception.

Binocular Cue

Visual information taken in by both eyes that enables perception of depth, distance, and three-dimensional features of objects.