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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Definitions:

ANOVA Model

Stands for Analysis of Variance, a statistical model used to compare and analyze the differences among group means in a sample.

Normally Distributed

Describes a bell-shaped distribution of data points, where most scores cluster around a central peak and the probabilities for values taper off equally in both directions from the center.

Population Means

The average values for characteristics or measurements calculated for every member of an entire population.

Sums of Squares

A statistical technique used in ANOVA to describe the total variability of a dataset by calculating the sum of squared differences from the mean.