Which of the following statements about perfect price discrimination is false?

Which of the following statements about perfect price discrimination is false?

		A condition for perfect price discrimination is that it must be costlier to service some customers than others.
		There is no consumer surplus if a firm engages in perfect price discrimination.
		For the price-discriminating firm, its marginal revenue curve coincides with its demand curve.
		Perfect price discrimination occurs when the seller charges the highest price each consumer would be willing to pay for the product.

Expert Solution

A condition for perfect price discrimination is that it must be costlier to service some customers than others.

A perfect price discrimination is where a monopolist charges prices equal to the maximum willingness to pay of the consumer which makes zero consumer surplus and the MR curve is same as the demand curve.

Rahul Sunny answered 2 years ago

_____ 1. Which of the following statements about a monopoly is false? With price discrimination deadweight...

_____ 1. Which of the following statements about a monopoly is false? With price discrimination deadweight loss is smaller but consumer surplus is also smaller For a monopolized market to stay monopolized there have to be barriers to entry With a monopoly, price will equal marginal cost The more inelastic the demand, the higher the mark up of price over marginal cost _____ 2. Which of the following statements about externalities is true? A positive consumption externality will result in...

1. Which of the following statements is false about a binding price ceiling? -A binding price...

1. Which of the following statements is false about a binding price ceiling? -A binding price ceiling will lower the price of a good -A binding price ceiling will always increase surplus for all consumers. -A binding price ceiling leads to a shortage of goods -A binding price ceiling can create deadweight loss 2. Which of the following is the explicit cost? -Interest foregone on the capital invested in business -Interest received on an investment -Interest paid on loan taken...

Which of the following statements about receptor potentials is FALSE?

Which of the following statements about receptor potentials is FALSE? A. They are changes in the resting membrane potential of a sensory cell in response to a stimulus. B. The receptor potential spreads from the cell body of a sensory cell to the axon hillock, where action potentials can be generated C. One receptor potential always prompts the release of a neurotransmitter that induces an associated neuron to generate an action potential. D. They must be converted into action potentials...

Which of the following statements about the nuclear envelope is FALSE?

Which of the following statements about the nuclear envelope is FALSE? A. It is composed of two membranes (a double membrane) B. Unlike other membranes in the cell, it primarily consists of complex polysacchrides such as cellulose C. It is supported by a cytoskeletal network known as nuclear lamina D. It contains pores for the passage of large molecules E. It contains the chromosomal DNA of eukaryotic cells

Which of the following statements about codes of conduct is false? -They are formal statements of...

Which of the following statements about codes of conduct is false? -They are formal statements of what an organization expects of its employees. -They guarantee an ethical business climate. -They help employees determine what behaviors are acceptable. -They provide rules and guidelines for employees to follow. -They should be specific enough to be reasonably capable of preventing misconduct. ____________________________________________________________________________________________________ While ideally the board of directors financial audit committee conducts ethics audits, in most firms they are conducted by: -managers or...

Which of the following statements about the relationship between perfect competition and efficiency is NOT correct?...

Which of the following statements about the relationship between perfect competition and efficiency is NOT correct? (a) In the short run, and assuming no other externalities, a perfectly competitive industry achieves allocative efficiency: that is, it produces the quantity which maximizes short-run gains from trade. (b) In the long run, and assuming no other externalities, a perfectly competitive industry with free entry achieves productive efficiency: that is, output is produced at minimum average cost. (c) In the long run, a...

A monopolist is using third-degree price discrimination. Which of the following statements are true? I. ...

A monopolist is using third-degree price discrimination. Which of the following statements are true? I. If a monopolist can use either the first-degree price discrimination or the third-degree price discrimination, then using third-degree price discrimination results in strictly higher profit than using first-degree price discrimination. II. A monopolist using third-degree price discrimination needs to know the willingness to pay of different groups of consumers III. Student discounts are an example of third-degree price discrimination Group of answer...

What is first-degree price discrimination? Is the outcome under perfect price discrimination allocatively and productively efficient?...

What is first-degree price discrimination? Is the outcome under perfect price discrimination allocatively and productively efficient? How does your answer change if the monopolist cannot price discriminate?

Decide which of the following statements are True and which are False about equilibrium systems: If...

Decide which of the following statements are True and which are False about equilibrium systems: If K = 8 for the reaction A + B ⇌ C + D, K will equal -8 for the reaction C + D ⇌ A + B For a reaction with K >> 1, the rate of the forward reaction is less than the rate of the reverse reaction at equilibrium. The value of K at constant temperature does not depend on the amounts...

Decide which of the following statements are True and which are False about equilibrium systems: The...

Decide which of the following statements are True and which are False about equilibrium systems: The value of K at constant temperature depends on the amounts of reactants and products that are mixed together initially. For a reaction with K >> 1, the rate of the forward reaction is less than the rate of the reverse reaction at equilibrium. A large value of K means the equilibrium position lies far to the left. For the following reaction: CaCO3(s) ⇌ CaO(s)...

Question