Perfect Price Discrimination

question 453

Multiple Choice

Perfect price discrimination

• A)increases profits to the firm.
• B)increases total surplus.
• C)decreases consumer surplus.
• D)All of the above are correct.

---

Definitions:

Smoothing Constant

A parameter used in exponential smoothing techniques that determines the weight given to the most recent observation in forecasting.

Exponential Smoothing

A forecasting technique that applies weighted averages of past observations, giving more weight to more recent observations to smooth data.

Liquor Sales

The commercial activity of selling alcoholic beverages, which can include processes such as licensing, distribution, and retailing.

Smoothing Constant

A parameter used in exponential smoothing techniques to apply different weights to past observations in forecasting.