Given below are two statements: Statement I : In the extreme case of perfect price discrimination the dead weight loss of monopoly is completely eliminated and all the surplus in the market goes to the monopolist. Statement II : Imperfect price discrimination necessarily increases welfare compared to the outcome of a single monopoly price. In the light of the above statements, choose the most appropriate from the options given below:

Question

cdquestions Admin · Accepted Answer

The correct option is(C): Statement I is correct but Statement II is incorrect

Answer

Both Statement I and Statement II are correct

Answer

Both Statement I and Statement II are incorrect

Answer

Statement I is correct but Statement II is incorrect

Answer

Statement I is incorrect but Statement II is correct

List - I	List - II
(A) MPC	(I) $\frac{1}{(1-MPC)}$
(B) AD	(II) $\frac{\Delta c}{\Delta y}$
(C) K	(III) C+1
(D) If MPC = 0	(IV) K=1

	₹
$NNP_FC$	380
Normal wear and tear	40
Subsidies (Net)	40
Intermediate Cost	120
Net factor income to Abroad	(-20)

The Correct Option is C

Solution and Explanation

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