Which of the following statements is not correct? For a given demand curve, the profit for a single-price monopolist is larger than for a monopolist that can price discriminate. The deadweight loss that arises in monopoly stems from the fact that the profit-maximizing single-price monopoly firm produces a quantity of output that is smaller the socially-efficient quantity. Consumer surplus is smaller with perfect price discrimination than for a single-price monopolist that can not price discriminate. The deadweight loss caused by monopoly is similar to the deadweight loss caused by a tax on a product.

Which of the following statements is not correct? For a given demand curve, the profit for a single-price monopolist is larger than for a monopolist that can price discriminate. The deadweight loss that arises in monopoly stems from the fact that the profit-maximizing single-price monopoly firm produces a quantity of output that is smaller the socially-efficient quantity. Consumer surplus is smaller with perfect price discrimination than for a single-price monopolist that can not price discriminate. The deadweight loss caused by monopoly is similar to the deadweight loss caused by a tax on a product.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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