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14.11.2021 06:45
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A monopolist that practices perfect price discrimination has the same deadweight

A monopolist that practices perfect price discrimination has the same deadweight loss triangle as the single-price monopolist. a) true
b) false
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alejandra1201
alejandra1201
4,5(12 marks)

The correct answer is the option B: False.

Explanation:

To begin with, the price discrimination strategy refers to a technique used by the companies in order to charge different prices to the different consumers regarding the fact of how much would they be able to pay for the product. When it comes to monopolies, a perfect price discrimination strategy would try as best as possible to capture the majority of the zone known as the "consumer surplus". And that is why that a company with a perfect price discrimination would face a small deadweight loss area due to the fact that with that strategy of price the monopolist will absorve as much as possible of that area becuase the triangle is half consumer surplus and half producer surplus.

dariel41
dariel41
4,9(21 marks)
Google translates it to English like this: "we implement automatic control systems for production needs, personal subsidiary farms. Increased reliability, hog accuracy, fast-installed. Always available in a warehouse in Samara.. Website: nproast.ru

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