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.
a
You might also like to view...
Refer to Table 2-1. Assume Dina's Diner only produces sliders and hot wings. A combination of 60 sliders and 25 hot wings would appear
A) along Dina's production possibilities frontier. B) inside Dina's production possibilities frontier. C) outside Dina's production possibilities frontier. D) at the vertical intercept of Dina's production possibilities frontier.
In Porter's Five Competitive Forces model, "competition from substitute goods or services" refers to
A) substitute products that come from outside the industry. B) substitute products that come from foreign competitors in the same industry. C) substitute products that come from domestic competitors in the same industry. D) competition from producers of substitutes who outsource their production.