question archive A perfectly price-discriminating monopolist is able to: a
A perfectly price-discriminating monopolist is able to: a
Subject:MarketingPrice:2.88 Bought15
A perfectly price-discriminating monopolist is able to:
a. exercise illegal preferences regarding the race and/or gender of its employees.
b. maximize profit and produce a socially-optimal level of output.
c. maximize profit, but not produce a socially-optimal level of output.
d. produce a socially-optimal level of output, but not maximize profit.
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- The correct option is b. Maximize profit and produce a socially optimal level of output.
A perfectly-price discriminating monopolist can sell the additional units in the market only by reducing the price of its product. Thus, this makes no deadweight loss for the monopolist and makes the monopolist extract the entire profit and produce at the socially-optimal level.
