Which of the following isnottrue for Perfect Price Discrimination?

(A) The welfare-maximizing quantity (aka the efficient quantity) is produced.

(B) Each consumer is charged their reservation price for a unit of a good.

(C) Firms engaging in perfect price discrimination need to prevent resale.

(D) Firms engaging in perfect price discrimination need information about consumer's underlying utility functions.

(E) Each of the facts above is true.

-- I think the answer is (B), but I'm not sure.

LetX= 1510

Suppose that the demand for the monopolist's product is given byq=X pand the total cost of production isc(q) = 10q.(Note: These are the same numbers from last week!)

(a) Suppose a price ceiling of $30 is imposed. What is the resulting price and quantity?

(b) What price ceiling has to be imposed in order to induce this firm to produce the socially optimal level of output?