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A Monopolist That Practices Perfect Price Discrimination

Question 219

Multiple Choice

A monopolist that practices perfect price discrimination


A) creates no deadweight loss.
B) charges one group of buyers a higher price than another group, such as offering a student discount.
C) charges a higher price but produces the same monopoly level of output as when a single price is charged.
D) charges some customers a price below marginal cost because costs are covered by the high-priced buyers.

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