If a monopolist practices perfect price discrimination
A) consumers surplus will be equal to the deadweight loss.
B) consumer surplus will be zero.
C) the firm will break even in the long run.
D) producer surplus will equal consumer surplus.
B
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Price discrimination exists:
A. only in perfectly competitive markets. B. because sellers try to exploit differences in customers’ willingness to pay. C. in all industries, regardless of market structure. D. only when demand is inelastic.
The nationally optimal tariff is the tariff for which
A. the difference between the part of the tariff paid by the exporters and the welfare loss associated with the consumption and production effects is the highest. B. the government collects the highest tariff revenue. C. the difference between the government tariff revenue and the sum of consumption and production effect is the highest. D. the production effect is equal to the consumption effect of the tariff.