Which is a distortion (a loss of social surplus) associated with a monopolist's inability to observe consumer types when constructing a nonlinear pricing scheme?
a. The monopolist must expend more resources on market research.
b. All bundles involve inefficiently low quantities.
c. Some but not all bundles involve inefficiently low quantities.
d. Quantities aren't distorted, but prices extract too much consumer surplus.
c
Economics
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Laws that make it difficult to start a new business lead to a
A) high rate of economic growth. B) low rate of economic growth. C) more political freedom. D) laissez-faire.
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Capital goods
A) are a special type of consumption goods. B) are consumed because they enhance the enjoyment consumers obtain from other goods and services. C) are goods used to make consumer goods and services. D) refer to the expenses that a company incur for producing other types of goods.
Economics