How Does a Competitive Market Compare to a Monopoly That

question 32

Multiple Choice

How does a competitive market compare to a monopoly that engages in perfect price discrimination?

• A)In both cases, total social welfare is the same.
• B)Total social welfare is higher in the competitive market than with the perfectly price discriminating monopoly.
• C)In both cases, some potentially mutually beneficial trades do not occur.
• D)Consumer surplus is the same in both cases.

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