Assume That a Monopolist Practices Perfect Price Discrimination

question 209

Multiple Choice

Assume that a monopolist practices perfect price discrimination.The firm will produce an output rate

• A)that is less than the efficient level of output.
• B)that is greater than the efficient level of output.
• C)that is equal to the efficient level of output.
• D)that converts consumer surplus into a deadweight loss.

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Definitions:

Maslow

Refers to Abraham Maslow, an American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Need

A requirement essential for an organism's survival, growth, and well-being.

Self-actualization

A concept in psychology representing the realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Maslow

Abraham Maslow was an American psychologist who created the hierarchy of needs, a theory in psychology proposing that human actions are motivated by the fulfilment of needs ranging from the most basic physiological to self-actualization.