If a Monopolist Practices Perfect Price Discrimination

question 77

Multiple Choice

If a monopolist practices perfect price discrimination,

• A)the firm will break even in the long run.
• B)consumer surplus will be equal to the deadweight loss.
• C)producer surplus will equal consumer surplus.
• D)consumer surplus will be zero.

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Definitions:

Hairdressers

Professionals trained in cutting, styling, and treating hair.

Natural Monopoly

A market condition where a single company can provide goods or services at a lower cost than any potential competitor, leading to a monopoly due to natural market forces.

Positive Externality

A benefit that affects a party who did not choose to incur that benefit, often associated with public goods and services.

Patent Laws

Regulatory legal frameworks designed to protect the rights of inventors by giving them exclusive rights to their inventions for a certain period.