When a Firm Uses Price Discrimination Successfully, the Result Is

question 65

Multiple Choice

When a firm uses price discrimination successfully, the result is that producer surplus _____ while deadweight loss _____ compared to a single-price monopoly.

• A) rises; rises because less output is produced with price discrimination
• B) rises; falls because output increases with price discrimination
• C) falls; rises because less output is produced with price discrimination
• D) falls; falls because output increases with price discrimination

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Definitions:

Bootstrap Standard Error

A method for estimating the standard error of a statistic by resampling with replacement from the original dataset and computing the statistic over many resamples.

Residents

Individuals who live in a specific area, city, or country, often referred to in the context of community demographics or citizenship.

Confidence Interval

A selection of values, garnered from statistical analysis of samples, presumed to contain the value of a cryptic population parameter.

Bootstrap Method

A statistical method that involves repeatedly sampling with replacement from a data set to estimate the sampling distribution and compute statistical accuracies.