Which of the Following Is Observed When Perfect Price Discrimination

question 28

Multiple Choice

Which of the following is observed when perfect price discrimination is practiced by a monopolist?

• A)Profit is lower than it would be without discrimination.
• B)Total revenue is lower than it would be without discrimination.
• C)Average revenue is less than average cost.
• D)Consumer surplus is zero.
• E)Profit is zero.

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Definitions:

Pyroclastic Column

A vertical column of volcanic ash and gas ejected into the atmosphere during an explosive volcanic eruption.

Fissure Eruption

A volcanic eruption that occurs when magma rises through and erupts onto the surface in a long fissure.

Lava Fountain

A fountain of molten lava propelled into the air by pressure and escaping gases.

Volcanic Dome

A rounded mound formed over a volcanic vent, created by the slow extrusion of viscous lava from a volcano.