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The Accompanying Figure Depicts a Generalized Downward-Sloping Market Demand (D)

Question 99

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The accompanying figure depicts a generalized downward-sloping market demand (D) curve for a product. It also shows the firm's relevant marginal revenue (MR) curve and marginal cost (MC) curve. Use this figure to answer the questions. The accompanying figure depicts a generalized downward-sloping market demand (D)  curve for a product. It also shows the firm's relevant marginal revenue (MR)  curve and marginal cost (MC)  curve. Use this figure to answer the  questions.   -What is the change in total welfare if the firm moves from a perfect price discrimination model to a perfect competition framework? A)  There would be a loss of $160 in total welfare. B)  There would be a gain of $80 in total welfare. C)  There would be a loss of $40 in total welfare. D)  There would be a gain of $120 in total welfare. E)  There would be no change in total welfare.
-What is the change in total welfare if the firm moves from a perfect price discrimination model to a perfect competition framework?


A) There would be a loss of $160 in total welfare.
B) There would be a gain of $80 in total welfare.
C) There would be a loss of $40 in total welfare.
D) There would be a gain of $120 in total welfare.
E) There would be no change in total welfare.

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