Use the Following Figure to Answer the Question : Figure

question 38

Multiple Choice

Use the following figure to answer the question : Figure 12-1 : shows the downward sloping demand and marginal revenue [MR] curves of a monopolist. The MR curve intersects the marginal cost [MC] curve at point B. MC is constant at the P₁.

-Refer to Figure 12-1. If the monopolist practices perfect price discrimination, consumer surplus will be equal to:

• A)the area P₃AP₂.
• B)the area P₃CP₁.
• C)the area ABC.
• D)zero.

---

Definitions:

Sweatshop

A workplace, often a factory, where workers are employed under poor, unsafe conditions and for very low wages.

Poor Conditions

Refer to unfavorable or substandard environments, often relating to living or working spaces that impact health and well-being negatively.

Overworked

A state in which an individual or workforce is subject to excessive workload, leading to stress or burnout.

Transnational Corporations

Entities that operate in multiple countries, extending their operations and market reach beyond national borders.