Under perfect price discrimination, consumer surplus A) is ...

[lbcchick]

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.

[dawsa925]

Answer to Question 1

C

Answer to Question 2

C