Answered: 1) In the case of a perfectly…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1) In the case of a perfectly price-discriminating monopoly, there is:

A. zero consumer surplus.

B. as much consumer surplus as in the case of perfect competition.

C. as much consumer surplus as in the case of a standard monopoly.

2) On Black Fridays, most retail outlets have major storewide sales. Yet, as one of the busiest shopping days in the United States, one would expect prices to increase, not decrease. Price discrimination explains the answer to this question because price:

A. sensitive shoppers are more likely to notice tying and bundling tricks.

B. insensitive shoppers will stay away to avoid the crowds.

C. sensitive shoppers are more likely to want to stay away from Black Friday.

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