Which Is a Distortion (A Loss of Social Surplus)associated with a Monopolist's

question 25

Multiple Choice

Which is a distortion (a loss of social surplus) associated with a monopolist's inability to observe consumer types when constructing a nonlinear pricing scheme?

• A)The monopolist must expend more resources on market research.
• B)All bundles involve inefficiently low quantities.
• C)Some but not all bundles involve inefficiently low quantities.
• D)Quantities aren't distorted,but prices extract too much consumer surplus.

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