When there are external costs of production, such as when ...

[SGallaher96]

When there are external costs of production, such as when electric utilities burn coal, a competitive market will produce an inefficient level of output.
 
  Indicate whether the statement is true or false

Question 2

Price discrimination
 
  A) eliminates the producer surplus.
  B) turns consumer surplus into producer surplus.
  C) decreases output below the profit-maximizing level.
  D) lowers a monopoly's economic profit.

[tuwy]

Answer to Question 1

TRUE

Answer to Question 2

B

[SGallaher96]

Thanks for the timely response, appreciate it

[rachel]

Excellent