Which of the following is true of perfect price discrimination?
a. A monopolist engages in perfect price discrimination when it cannot identify the minimum price the buyer is willing and able to pay.
b. A monopolist engaging in perfect price discrimination targets only the groups that are price sensitive
c. A monopolist engaging in perfect price discrimination produces the same output level as under perfect competition.
d. A monopolist engages in perfect price discrimination when it is able to charge different prices to distinct customers based upon variances in willingness to pay.
c
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The Solow model is distinct from the Romer model in that an increase in population tends to cause ________
A) a permanent decrease in the standard of living in the Romer model B) an increase in spillover effects in the Solow model, but not in the Romer model C) a permanent increase in the standard of living in the Solow model D) a permanent increase in the standard of living in the Romer model
When regulating a natural monopoly, government officials
a. can set an efficient price, but the firm will suffer a loss b. can arrange a Pareto improvement by leaving the firm alone c. should force the firm to set a price equal to minimum marginal cost d. should force the firm to set a price equal to minimum long-run average total cost e. will increase efficiency if they force the firm to produce where MR = MC.