Which of the Following Statements Is TRUE About Price Discrimination

question 253

Multiple Choice

Which of the following statements is TRUE about price discrimination?

• A) Price discrimination makes consumers worse off due to higher prices.
• B) Price discrimination leads to deadweight loss and therefore makes the market less efficient.
• C) Price-discriminating monopolists often produce more output than single-price monopolists and increase total surplus in the process.
• D) Price discrimination is illegal in the United States.

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Definitions:

Pollen Grains

Microscopic structures containing male gametes that are transferred from the male anther to the female reproductive structure in plants.

Ovules

The structure within the ovary of seed plants that develops into a seed after fertilization.

Contained

Something that is held or enclosed within a boundary or container, preventing it from spreading or escaping.

Ovary

In flowering plants, the enlarged, ovule-bearing portion of the carpel that develops into a fruit; female gonad in animals that produces an egg and female sex hormones.