Which of the following is true of perfect price discrimination?
a. Profit is lower than it would be without discrimination.
b. Revenue is higher than it would be without discrimination, but profit is lower.
c. Average revenue and average cost are both higher than they would be without discrimination, so it is not certain whether profit will be higher.
d. Consumer surplus is zero.
e. Profit is zero.
D
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"The second glass of Evian water was very good. May I have another?" Which of the following is necessarily true regarding this statement?
a. The marginal utility of the second glass is negative. b. The marginal utility of the second glass is less than the marginal utility of the first glass. c. The marginal utility of the second glass is positive. d. The water is free. e. The marginal utility of the third glass is negative.
If other things constant, as more bananas are consumed, marginal utility eventually
a. decreases at the same rate for all people b. decreases at the same rate for all goods for a given person c. increases at the same rate for all people d. decreases at different rates for different people and for other goods e. decreases at different rates for different people but at the same rate as other goods for an individual