Which of the Following Is True of a Price Discriminating

question 49

Multiple Choice

Which of the following is true of a price discriminating monopolist employing a two-part tariff on consumers having different demands?

• A)They earn less profit than the non-price discriminating monopolists.
• B)They supply an output which is higher than the non-price discriminating monopoly output.
• C)They set a price that is higher than the non- price discriminating monopoly price.
• D)They set an entry fee which is more than the total consumer surplus.

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Definitions:

Sated

The state of being satisfied fully, especially in terms of hunger.

Starvation Diet

A starvation diet refers to a severely restrictive eating plan that significantly reduces calorie intake, often leading to malnutrition and health issues.

Caloric Reduction

This term involves the decrease in the amount of calories consumed with the intention of achieving health benefits such as weight loss or longevity.

Metabolism

The set of life-sustaining chemical reactions in organisms, allowing for the growth, reproduction, maintenance of their structures, and response to environments.