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A firm with a demand curve P = 10 - Q is a perfect price discriminating monopolist with zero marginal costs and fixed costs of 12. Consider the following two statements comparing the price discriminating case with a single price monopolist:. 1) In this case consumers are better off as a group because more of the product is produced. 2) Producers are better off because they have higher profits.



A. Both statements are true.
B. Only the first statement is true.
C. Only the second statement is true.
D. Both statements are false.

This question is part of Micro: Chapter 11
Asked by Twright, Last updated: Jan 16, 2020

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1 Answer

John Smith

John Smith

Answered Apr 24, 2017

Only the second statement is true.
 

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