- CFA Exams
- CFA Level I Exam
- Study Session 4. Economics (1)
- Reading 13. The Firm and Market Structures
- Subject 6. Price Discrimination
CFA Practice Question
Price discrimination is most likely an attempt by a monopoly to ______
A. capture a consumer surplus.
B. resell a product.
C. capture a producer surplus.
Explanation: A monopoly employs price discrimination to capture consumer surplus and to convert a consumer surplus to an economic profit.
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