Author Question: When a monopolist is able to price-discriminate: a. its profits tend to increase and its consumer ... (Read 60 times)

Bob-Dole · **on:** Jun 30, 2018

When a monopolist is able to price-discriminate:
a. its profits tend to increase and its consumer surplus tends to fall.
b. both its profits and consumer surplus tend to increase.
c. both its profits and consumer surplus tend to decrease.
d. its profits tend to fall and its consumer surplus tends to increase.

Question 2

While it is possible to erect barriers to foreign competition and save domestic jobs, restricting international trade may impose large costs on an economy.
a. True
b. False
Indicate whether the statement is true or false