Compared to the Monopoly Outcome with a Single Price, Imperfect

question 195

Multiple Choice

Compared to the monopoly outcome with a single price, imperfect price discrimination (i) sometimes raises total surplus.
(ii) sometimes lowers total surplus.
(iii) always leads to a lower quantity of output.

• A) (i) and (ii) only
• B) (ii) and (iii) only
• C) (i) and (iii) only
• D) (iii) only

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Definitions:

Greenhouse Gases

Gases in Earth's atmosphere that trap heat, contributing to the greenhouse effect, including carbon dioxide and methane.

Chlorofluorocarbons

Man-made chemical compounds once used in aerosol sprays and refrigerants, known for their damaging effects on the Earth's ozone layer.

Sulphur Dioxide

A toxic gas with a pungent, irritating smell, produced by the combustion of fossil fuels and is a significant component of air pollution.