A Monopolist That Practices Perfect Price Discrimination

question 219

Multiple Choice

A monopolist that practices perfect price discrimination

• A)creates no deadweight loss.
• B)charges one group of buyers a higher price than another group, such as offering a student discount.
• C)charges a higher price but produces the same monopoly level of output as when a single price is charged.
• D)charges some customers a price below marginal cost because costs are covered by the high-priced buyers.

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Definitions:

Maslow's Need Hierarchy

A psychological theory proposing that human needs are arranged in a hierarchy, starting from basic physiological needs to self-actualization.

Growth Need Category

A classification of needs that focuses on an individual's desire for personal development, competence, and self-fulfillment.

Self-actualization

Refers to the realization or fulfillment of one's talents and potentialities, especially considered as a drive or need present in everyone.

Self-esteem Needs

The psychological requirements for feeling valuable and competent, often considered a middle tier in Maslow's hierarchy of needs.