A firm with a demand curve P = 10 - Q is a perfect price discriminating monopolist with zero marginal costs and fixed costs of 12. Consider the following two statements comparing the price discriminating case with a single price monopolist. 1) In this case consumers are better off as a group because more of the product is produced. 2) Producers are better off because they have higher profits. Which of the following comments about these statements is true? 
A. Only the second statement is true.
B. Both statements are true.
C. Both statements are false.
D. Only the first statement is true.
Answer: A
Economics
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Macroeconomic equilibrium can occur at any point on the 45-degree line
Indicate whether the statement is true or false
Economics
Use the above figure. If a commission regulates the above monopoly using marginal cost pricing, then the industry's output will be ________ and the product's price will be ________
A) Q2; P1 B) Q2; P3 C) Q3; P2 D) Q4; P1
Economics