All categories

3 years ago

A monopolist that practices perfect price discrimination has the same deadweight loss triangle as the single-price monopolist.

Business

1 answer:

beks73 [17]3 years ago

7 0

Answer:

The correct answer is the option B: False.

Explanation:

To begin with, the price discrimination strategy refers to a technique used by the companies in order to charge different prices to the different consumers regarding the fact of how much would they be able to pay for the product. When it comes to monopolies, a perfect price discrimination strategy would try as best as possible to capture the majority of the zone known as the "consumer surplus". And that is why that a company with a perfect price discrimination would face a small deadweight loss area due to the fact that with that strategy of price the monopolist will absorve as much as possible of that area becuase the triangle is half consumer surplus and half producer surplus.

You might be interested in

On January 12, 2021, Jefferson Corporation purchased bonds of Rose Corporation for $52 million at par and classified the securit

sineoko [7]

Answer:

Transaction gain = $16 million

Explanation:

Given:

Purchase amount = $52 million

December 31, 2021, bonds value = $46 million

October 3, 2022, bonds sold = $62 billion

Computation:

Using multi-step approach

Transaction gain = October 3, 2022, bonds sold - December 31, 2021, bonds value

Transaction gain = $62 million - $46 million

Transaction gain = $16 million

5 0

3 years ago

The primary goal of the consumer financial protection bureau is

ASHA 777 [7]

The Consumer Financial Protection Bureau (CFPB) is not well-known to many people. It’s a relatively new government organization that’s part of the Federal Reserve. The CFPB was created after the financial crisis of 2008 to protect consumers – hence the name. Before the CFPB was created, the responsibility to protect consumers was divvied up among several government agencies. But consumer protection is the CFPB’s primary focus.

7 0

3 years ago

Read 2 more answers

The following data are from the accounting records of Niles Castings for year 2: Units produced and sold 80,000 Total revenues a

Kruka [31]

Answer:

Gross Margin = $ 115,000 Contribution Margin= $ 144,500

Explanation:

Nile Castings

Income Statement

Year 2

Sales Revenue $ 270,000

Direct Materials $63,000

Direct Labor $ 33,000

Variable Manufacturing Overheads $ 18,000

Fixed Manufacturing Costs $ 41,000

Gross Margin $ 115,000

Less Marketing & Administrative Costs

Fixed Marketing Costs $ 38,000

Variable Marketing Costs $ 11,500

Net Profit $ 65,500

Nile Castings

Income Statement Under Absorption Method

Year 2

Sales Revenue $ 270,000

Direct Materials $63,000

Direct Labor $ 33,000

Variable Manufacturing Overheads $ 18,000

Variable Marketing & Administrative Costs $ 11,500

Contribution Margin $ 144,500

Less Fixed Costs

Fixed Manufacturing Costs $ 41,000

Fixed Marketing Coss $ 38,000

Net Profit $ 65,500

3 0

3 years ago

When do many companies expect to have a net loss

Korolek [52]

When outflow exceeds income.

6 0

3 years ago

Overapplied manufacturing overhead would result if:

Ksivusya [100]

Manufacturing overhead describes the difference between manufacturing overhead cost applied to work in process and manufacturing overhead cost actually incurred during a period.
Over-applied manufacturing overhead would result if the manufacturing overhead cost applied to work in process is more than the manufacturing overhead cost actually incurred during a period. So, in over-applied overhead the applied overhead is bigger than the actual overhead.

4 0

3 years ago