10.3 Price Discrimination Suppose a Monopolist Faces the Demand Curve and Cost Curves

Multiple Choice

10.3 Price Discrimination
Suppose a monopolist faces the demand curve and cost curves shown below. FIGURE 10-5
-Refer to Figure 10-5.Suppose this monopolist is practicing perfect price discrimination.How does this differ from the situation where this firm is charging a single price for its product?

A) The firm is producing the same quantity,has successfully identified different segments of the market,and is able to capture some of the consumer surplus.
B) The firm is restricting output to a level below that of the single-price monopolist,and thereby raises the price of its product and earns higher profits.
C) The firm is producing a smaller quantity,is charging a different price for each unit sold and is earning higher profits.
D) The firm is producing the same quantity,but charging a different price for each unit sold and is earning higher profits.
E) The firm is producing a higher quantity,is charging a different price for each unit sold and is earning higher profits.