The Following Figure Shows the Downward Sloping Demand and Marginal

question 35

Multiple Choice

The following figure shows the downward sloping demand and marginal revenue [MR] curves and the upward sloping marginal cost [MC] curve of a monopolist.
Figure 12-2
-Refer to Figure 12-2.Compared to the situation when there is no price discrimination,first-degree price discrimination causes the consumer surplus to decline by the area:

• A)ZVN.
• B)CVF.
• C)VWE.
• D)EIF.

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Definitions:

Unutilized Assets

Resources or assets owned by a company that are not being used to their full potential, often resulting in inefficiency and lost revenue.

Overbooking

The practice of selling or booking more of a service than what is actually available, under the assumption that there will be cancellations or no-shows.

Lost Revenue

Revenue that was not earned due to missed opportunities, such as not having enough inventory to meet demand.

Differential Pricing

The strategy of selling the same product to different customers at different prices based on market factors, demand, and customer’s willingness to pay.