Which of the following statements is true?
a.In perfect price discrimination, the firm is able to convert the entire area of consumer surplus that existed under perfect competition into producer surplus.
b. There is no producer surplus associated with perfect price discrimination.
c. There is a deadweight loss associated with perfect price discrimination.
d. For a monopoly there is an increase in total welfare for society compared to perfect competition.
a. In perfect price discrimination, the firm is able to convert the entire area of consumer surplus that existed under perfect competition into producer surplus.
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Investment spending includes spending on
A) changes in business inventories. B) stocks. C) food. D) transfer payments.
In the short run, a firm should shut down its business if price is less than:
a. ATC. b. AR. c. MC. d. AVC. e. AFC.
Countries tend to export different goods and services because of:
a. differences in their comparative advantages. b. differences in tastes and technological needs. c. differences in income. d. similarities in resource endowment. e. differences in the exchange rates.
The existence of a monopoly:
A. creates market inefficiencies. B. causes a reduction in total surplus. C. causes consumers to get less at a higher price. D. All of these statements are true.