A monopolist who is able to practice perfect price discrimination Question 10 options: a) produces where the last unit sold is equal to marginal cost b) there is no deadweight loss to society c) the entire consumer surplus is transferred to the monopolist d) all of the above

A monopolist who is able to practice perfect price discrimination Question 10 options: a) produces where the last unit sold is equal to marginal cost b) there is no deadweight loss to society c) the entire consumer surplus is transferred to the monopolist d) all of the above

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter28: Antitrust And Regulation

Section: Chapter Questions

Problem 8E

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Concept explainers

Price Discrimination

Price discrimination or differential pricing is based on the principle that the seller will charge the buyer a price based on the buyer’s ability and willingness to pay for the product rather than applying uniform pricing for all.

Question

A monopolist who is able to practice perfect price discrimination

Question 10 options:

a)	produces where the last unit sold is equal to marginal cost

b)	there is no deadweight loss to society

c)	the entire consumer surplus is transferred to the monopolist

d)	all of the above

Definition Definition Cost to society created by market inefficiency when supply and demand are not in market equilibrium.

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