Arnie's Airlines Is a Monopoly Airline That Is Able to Price

question 137

Multiple Choice

Arnie's Airlines is a monopoly airline that is able to price discriminate.If Arnie's decides to price discriminate,then

• A) Arnie's profit increases.
• B) consumer surplus increases.
• C) Arnie's revenues decrease.
• D) Arnie's sells fewer tickets.
• E) Arnie can no longer set a price that depends upon the buyer's willingness to pay.

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Definitions:

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