A. Perfect price discrimination generates a deadweight loss
B. Price discrimination can raise economic welfare.
C. price discrimination requires that seller be able to separate buyers according to their willingness to pay.
D. Price discrimination increases a monopolist’s profits.
E. For a monopolist to engage in price discrimination buyers must be unable to engage in arbitrage.
Related Mcqs:
- Which of the following statements regarding discrimination is true ?
A. The existence of a wage differential among groups is strong evidence of discrimination in the labour market
B. Discrimination can only persist in a competitive labour market it customers are willing to pay to maintain the discriminatory practice or the government requires discrimination
C. Bigoted employers are the main source of a persistent discriminatory wage differential in a competitive market
D. Discrimination cannot exist in a competitive labor market - In price discrimination, which section of the market is charged the higher price ?
A. The section with the richest people
B. The section with the oldest people
C. The section with the most inelastic demand
D. The section with the most elastic demand - Which of the following statements is true if the government places a price ceiling on petrol at Rs150 per litre and the equilibrium price is Rs100 per litre ?
A. A significant increase in the demand for petrol could cause the price ceiling to become a binding constraint.
B. A significant increase in the supply for petrol could cause the price ceiling to become a binding constraint.
C. There will be a shortage of petrol
D. There will be surplus of petrol - Suppose that the world price of tin is above the target (ceiling) price that is defined by an international commodity agreement. To move the world price toward the target price, a buffer stock agreement would require its buffer stock manager to ____ tin and an export quota agreement would require that member countries _________ their export of tin?
A. purchase; decrease
B. purchase; increase
C. sell; increase
D. sell; decrease - In order to practice price discrimination which of the following is needed ?
A. some degree of monopoly power
B. an ability to separate the market
C. an ability to prevent reselling
D. all of the above - Which of the following best defines price discrimination ?
A. charging different prices on the basis of race
B. charging different prices for goods with different costs of production
C. charging different prices based on cost-of-service differences
D. selling a certain product of given quality and cost per unit at different prices to different buyers - Which of the following statements about price and marginal cost in competitive and monopolized markets is true ?
A. In competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost.
B. In competitive markets price equals marginal cost, in monopolized markets price equals marginal cost
C. In competitive markets price exceeds marginal cost, in monopolized markets price exceeds marginal cost
D. In competitive markets price exceeds marginal cost in monopolized markets price equals marginal cost - A benefit to consumers of price discrimination is that ?
A. Some products are produced that would not otherwise be produced
B. Producer surplus increases
C. Consumer surplus decreases
D. Firm’s profits increase - In Price discrimination abnormal profits are made if ?
A. Average revenue is greater than average variable cost
B. Average revenue is greater than average cost
C. Average revenue is greater than marginal revenue
D. Average revenue is greater than average fixed cost - In perfect price discrimination ?
A. Consumer surplus is maximised
B. produce surplus is zero
C. Community surplus is maximised
D. Consumer surplus is zero
