Which of the Following Statements About Price Discrimination Is Not

question 3

Multiple Choice

Which of the following statements about price discrimination is not true?

• A) Price discrimination increases a monopolist's profits.
• B) Price discrimination can raise economic welfare.
• C) Price discrimination requires that the seller be able to separate buyers according to their willingness to pay.
• D) Perfect price discrimination generates a deadweight loss.
• E) For a monopolist to engage in price discrimination, buyers must be unable to engage in arbitrage.

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