A Monopolist That Practices Perfect Price Discrimination

question 219

Multiple Choice

A monopolist that practices perfect price discrimination

• A)creates no deadweight loss.
• B)charges one group of buyers a higher price than another group, such as offering a student discount.
• C)charges a higher price but produces the same monopoly level of output as when a single price is charged.
• D)charges some customers a price below marginal cost because costs are covered by the high-priced buyers.

---

Definitions:

Shelf Life

The time period during which a product, such as food or medicine, remains safe and effective to use.

Calorie

A unit for measuring the heat value of food.

Heat Value

The amount of heat produced by the complete combustion of a given substance, often measured in Joules per kilogram (J/kg) or British Thermal Units (BTU).

Food

any nutritious substance that people or animals eat or drink to maintain life and growth.