Perfect price discrimination describes a situation in which the monopolist
a. knows the exact willingness to pay of each of its customers.
b. charges exactly two different prices to exactly two different groups of customers.
c. maximizes consumer surplus.
d. experiences a zero economic profit.
a
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In the balance of payments, if there are no statistical errors or discrepancies, which of the following is TRUE of the sum of the capital account balance, the current account balance, and the official reserve transactions account balance?
A) This sum is either positive or negative, depending on whether the sum of all surplus and deficit items associated with cross-border transactions is positive or negative. B) This sum must always be zero, because the sum of all surplus and deficit items associated with cross-border transactions must equal zero. C) This sum is positive only if the U.S. government operates with a budget surplus. D) This sum is positive only if the U.S. government operates with a budget deficit.
A form of economic organization that relies primarily on private ownership of productive assets, freedom of exchange, and market prices to allocate goods and resources is often called
a. national socialism. b. the welfare state. c. a corporate economy. d. capitalism.
The consumer's optimal choice is the one in which the marginal utility per dollar spent on good X is
a. equal to the marginal utility per dollar saved on good X. b. greater than the marginal utility per dollar spent on good Y. c. equal to the marginal utility per dollar spent on good Y. d. less than the marginal utility per dollar spent on good Y.
The aggregate demand curve shows the:
a. Direct relationship between the price level and real GDP produced b. Inverse relationship between interest rates and real GDP produced c. Inverse relationship between the price level and real GDP purchased d. Direct relationship between real-balances and real GDP purchased