Price Discrimination Is Considered Bad When

question 220

Multiple Choice

Price discrimination is considered bad when:

• A) total surplus increases.
• B) total surplus decreases.
• C) deadweight loss is diminished.
• D) it is practiced by any firm.

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Definitions:

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit.

VaR (Value At Risk)

A statistical technique used to measure and quantify the level of financial risk within a firm, portfolio, or position over a specific time frame.

Tail Risk

The risk of an investment moving more than three standard deviations from its current price, often associated with unpredictable, extreme events.

Worst-case Scenario

The most adverse or unfavorable outcome among a set of possibilities for a situation.