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- Monopolyeconomics-mcqs › monopoly
- Published
- 30 May 2019
- Last updated
- 28 May 2026
Which of the following statements about price discrimination is incorrect?
Multiple choice question for Monopoly. Select an option, then review the explanation below.
Explanation
Option A is false because perfect price discrimination actually eliminates deadweight loss by capturing all consumer surplus. The other statements are true: price discrimination can enhance economic welfare, requires the ability to segment buyers by willingness to pay, increases a monopolist’s profits, and necessitates that arbitrage among buyers is not possible.
More Monopoly MCQs
Practice related questions from the same subject.
- 1.Which option best describes the concept of price discrimination?
- 2.In contrast to a perfectly competitive market, what is a monopolist more inclined to do?
- 3.In a pure monopoly market, how does the price compare to the marginal revenue?
- 4.What action should a monopolist take when marginal revenue is greater than marginal cost?
- 5.What is the likely impact on production costs if a natural monopoly is divided into several smaller companies by regulators?