CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

Which of the following is the least likely outcome when a monopoly adopts perfect price discrimination because of customers' differing demand elasticities?
A. The monopolist shares the total surplus with consumers.
B. The price for marginal units becomes less than the price for other units.
C. output increases to the point at which price equals marginal cost.
Explanation: In a monopoly, perfect price discrimination results in the total surplus being kept by the producer, the monopolist.

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