When Firms Price Discriminate, They

question 49

Multiple Choice

When firms price discriminate, they

• A)get additional surplus from consumers who would have bought at the profit-maximizing uniform price but lose sales because of the higher prices.
• B)maintain surplus from existing consumers but pick up additional consumers that would not have bought at the profit-maximizing uniform price.
• C)get additional surplus from consumers who would have bought at the profit-maximizing uniform price.
• D)None of the above.

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Definitions:

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