Which of the Following Statements About Price Discrimination Is False

question 271

Multiple Choice

Which of the following statements about price discrimination is false?

• A) Price discrimination is a method for a seller to capture some consumer surplus.
• B) Compared to a single-price monopoly, the number of units sold increases when a monopoly price discriminates.
• C) Charging less for a second pizza that is identical to the first is an example of price discrimination.
• D) Price discrimination increases a monopoly's profit.
• E) All forms of price discrimination are illegal.

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Definitions:

Inadvertently Sells

The act of selling something accidentally or without the intention of doing so.

Special Property Interest

A legal right or claim to real estate or property that grants certain uses or privileges to the holder beyond simple ownership.

Trial Sale

A temporary, conditional sale of a product to a customer, allowing the customer to test and evaluate the product before making a final purchase decision.

Transfer of Title

The process of legally changing ownership of a property from one entity or person to another.