Under conditions of first-degree price discrimination A) ...

[Coya19@aol.com]

Under conditions of first-degree price discrimination
 
  A) production will equal that which would exist under perfect competition.
  B) production will exceed that which would prevail under perfect competition.
  C) prices will be lower than under perfect competition.
  D) production will always be lower than under perfect competition.

Question 2

If two firms behave as Cournot duopolists, the level of social welfare is lower than if the same firms act as a cartel.
 
  Indicate whether the statement is true or false

[onowka]

Answer to Question 1

A

Answer to Question 2

False. The Cournot duopolists produce more at a lower price than a cartel. Thus, social welfare is lower with a cartel.

[Coya19@aol.com]

Thanks for the timely response, appreciate it

[jackie]

Great answer, keep it coming