Which of the Following Statements Regarding a Monopoly's First-Degree Price

question 13

Multiple Choice

Which of the following statements regarding a monopoly's first-degree price discrimination is correct?

• A)With first-degree price discrimination, consumer surplus is small, yet still greater than zero.
• B)With first-degree price discrimination, producer surplus is lower than with uniform pricing.
• C)With first-degree price discrimination, deadweight loss is large.
• D)With first-degree price discrimination, total surplus is greater than when the monopoly charges a uniform price.

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Definitions:

Three-Wire

Refers to an electrical circuit or cable that consists of three conductors, which can be used in various applications including power supply and control circuits.

Motor Starter

A device or system that controls the use of electrical power to equipment, especially motors, preventing damage by controlling the electrical power for starting the motor.

Maintained Contact

A switch mechanism that keeps or maintains its position (either on or off) until manually changed or actuated.

Momentary Contact

Momentary contact refers to an electrical switch or relay contact that only completes the circuit while being physically engaged or pressed.