1) In the case of a perfectly price-discriminating monopoly, there is:
A. zero consumer surplus.
B. as much consumer surplus as in the case of perfect competition.
C. as much consumer surplus as in the case of a standard monopoly.
2) On Black Fridays, most retail outlets have major storewide sales. Yet, as one of the busiest shopping days in the United States, one would expect prices to increase, not decrease. Price discrimination explains the answer to this question because price:
A. sensitive shoppers are more likely to notice tying and bundling tricks.
B. insensitive shoppers will stay away to avoid the crowds.
C. sensitive shoppers are more likely to want to stay away from Black Friday.