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A Perfectly Price-Discriminating Monopolist

Question 117

Multiple Choice

A perfectly price-discriminating monopolist:


A) shifts the demand curve for its product to the right by producing where MC = MR.
B) will cause a greater welfare loss than will a monopolist that is not price-discriminating.
C) captures some or all of the consumer surplus.
D) increases both consumer surplus and producer surplus.

Correct Answer:

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