If a Firm Successfully Price Discriminates,it Increases

question 2

Multiple Choice

If a firm successfully price discriminates,it increases
i.consumer surplus.
ii.deadweight loss.
iii.economic profit.

• A) i only
• B) ii only
• C) iii only
• D) i and iii
• E) i and ii

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Definitions:

Decision Making

The method of selecting options through pinpointing a decision, accumulating data, and evaluating different solutions.

Category Type

A classification that groups items or transactions with similar characteristics for organizational or reporting purposes.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Owners' Equity

The residual interest in the assets of an entity after deducting liabilities, representing the owners' claims on the business assets.