The Consumer Surplus Derived from the Last Unit of a Good

question 184

Multiple Choice

The consumer surplus derived from the last unit of a good purchased _____

• A)tends to be less than zero.
• B)tends to be equal to zero.
• C)tends to equal the price of the good.
• D)tends to be greater than the price of the good.
• E)tends to be greater than the marginal utility of the first unit purchased.

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Definitions:

Profit-Maximizing

A strategy adopted by businesses aiming to achieve the highest possible profit given the constraints they face.

Quantities

Numerical amounts or counts of items, goods, or materials.

Third-Degree Price Discrimination

A pricing strategy where different prices are charged to different customer groups based on their elasticity of demand.

First-Degree Price Discrimination

A pricing strategy where a seller charges the maximum price that each consumer is willing to pay, capturing the entire consumer surplus.