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5 November, 20:36

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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  1. 5 November, 23:14
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    A monopolist that practices perfect price discrimination

    a. creates no deadweight loss.

    Explanation:

    Theoretically, if a monopolist is able to practice perfect price discrimination:

    marginal revenue curve = demand curve consumer surplus = 0 every customer pays the highest amount that they are willing to pay production level = perfectly competitive level of output
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