Which of the Following Statements Is True

question 99

Multiple Choice

Which of the following statements is true?

• A)Consumer surplus under perfect price discrimination is greater than under single-price monopoly pricing.
• B)Consumer surplus under an optimal two-part tariff is greater than that under single-price monopoly pricing.
• C)Although consumers reap some consumer surplus under a single-price monopoly, society is better off with optimal two-part tariff pricing.
• D)Of the three pricing schedules, single-price monopoly, an optimal two-part tariff, and perfect price discrimination, profit is highest under single-price monopoly pricing.

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Definitions:

Rationalized

The process of making procedures or activities more efficient and orderly by implementing logical or practical methods and procedures.

Scientific Management

A theory of management that analyzes and synthesizes workflows, aiming to improve economic efficiency, especially labor productivity.

Equal Division

The act of distributing resources, responsibilities, or opportunities among parties in a manner that does not favor one over the others.

Planning Labor

The act of organizing and allocating workforce resources in anticipation of future work and projects.