The Table Given Below Shows the Price, Marginal Revenue and Marginal

question 9

Multiple Choice

The table given below shows the price, marginal revenue and marginal cost of a monopolist at different levels of the output. The firm does not incur a fixed cost of production.Table 11.4

-Which of the following is true of a firm that can successfully practice price discrimination?

• A)Its total revenue is often reduced.
• B)It appropriates a part of the consumer surplus.
• C)It has no way of distinguishing between types of customers.
• D)It has no market power in the industry.
• E)It must be a perfectly competitive firm.

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Definitions:

Non-Controlling Interest

A minority share of ownership in a subsidiary that is not directly controlled by the parent company, typically reflected in the equity section of the consolidated financial statement.

Consolidated Financial Position

A representation of a parent company and its subsidiaries' financial status as one entity, summarizing assets, liabilities, and equity.

Acquisition Differential

The difference between the purchase price of a company and the fair value of its identifiable net assets at the acquisition date.

Intercompany Gain

Intercompany Gain is the profit recognized from transactions between affiliated companies, which may need to be eliminated during the consolidation process to present accurate financial statements.