The outcome of first-degree price discrimination is: A) Pareto ...

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The outcome of first-degree price discrimination is:
 
  A) Pareto efficient with equity.
  B) Pareto efficient with inequity.
  C) Pareto inefficient with inequity.
  D) Pareto inefficient but is equitable.

Question 2

An increase in the level of government price supports for wheat will not make wheat farming more profitable because
 
  A) by definition government actions cannot affect profits.
  B) it raises the cost of growing wheat as well as the revenue.
  C) profit is the consequence of certainty and government policies are inherently uncertain.
  D) the demand for wheat is inelastic.
  E) wheat farmers are price takers, not price searchers.

[frre432]

Answer to Question 1

B

Answer to Question 2

B

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