Under perfect price discrimination, consumer surplus
A) is less than zero.
B) is greater than zero.
C) equals zero.
D) is maximized.
Question 2
When facing a 50 chance of receiving 50 and a 50 chance of receiving 100, the individual pictured in Figure 5.2
A) would pay a risk premium of 10 utils to avoid facing the two outcomes.
B) would want to be paid a risk premium of 10 utils to give up the opportunity of facing the two outcomes.
C) would pay a risk premium of 7.50 to avoid facing the two outcomes.
D) would want to be paid a risk premium of 7.50 to avoid facing the two outcomes.
E) has a risk premium of 10 utils.
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