A Monopolist Who Has a Horizontal ATC Schedule and Perfectly

question 389

Multiple Choice

A monopolist who has a horizontal ATC schedule and perfectly price discriminates

• A) leaves buyers a decreased but still positive amount of consumer surplus.
• B) increases the amount of consumer surplus that is lost to the buyers and not gained by the monopolist.
• C) appropriates all consumer surplus as profit.
• D) does not change the amount of consumer surplus that buyers had before the monopolist perfectly price discriminated.

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Definitions:

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A measure of how much the quantity demanded of a good responds to a change in its price, indicating the sensitivity of consumers to price changes.

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