Refer to Figure 15-12. If the firm maximizes its profits, the deadweight loss to society due to this monopoly is equal to the area

Price discrimination is a rational strategy for a profit-maximizing firm when

A) it is possible to engage in arbitrage across market segments. B) there is no opportunity for arbitrage across market segments. C) it is not possible to segment consumers into identifiable markets. D) firms want to increase the amount of consumer surplus received by its customers.

Most business people calculate marginal cost and marginal revenue to decide how much to produce

a. True b. False Indicate whether the statement is true or false