If a Monopoly Can Perfectly Price Discriminate

question 264

Multiple Choice

If a monopoly can perfectly price discriminate,

• A) all the demanders pay one price.
• B) it minimizes its profit.
• C) it produces the same amount of output as would be produced if the market was a perfectly competitive industry.
• D) it produces less output than would be produced if the market was a perfectly competitive industry.
• E) it creates the same amount of consumer surplus as would be created if the market was a perfectly competitive industry.

---

Definitions:

Invoice

A document issued by a seller to a buyer that specifies the products or services being sold, their quantity, and the price.

Transaction

A transaction is an agreement or exchange between two or more parties that is enforceable by law.

Debit Balance

A financial account status where the total debits exceed the total credits, indicating an amount owed.

Office Supplies

Items used in offices on a regular basis for the purpose of carrying out tasks and operations, including pens, paper, and staplers.