1. Which of the following markets will have the largest deadweight loss?
A) A market that consists of a single-price monopoly.
B) A market that consists of perfectly competitive firms.
C) A market that consists of a perfect price discriminating monopoly.
D) None of the above.
2. Consumer surplus is smallest for
A) a perfectly competitive industry.
B) a single-price monopoly.
C) a perfectly price-discriminating monopoly.
D) any price-discriminating monopoly.
3. A monopoly can price discriminate between two groups of consumers if each group has ________.
A) a large consumer surplus
B) a different willingness to pay
C) the same willingness to pay
D) the ability to resell the good to the other group.