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:

Annual Fee

A yearly charge levied by financial institutions, credit card companies, or clubs for membership or access to services.

Full Price

Full price refers to the total, undiscounted amount charged for a product or service.

Anchor Stores

Large, prominent retailers within a shopping mall or center that attract a significant number of shoppers, serving as a foundational attraction for the center.

Regional Shopping Center

A large retail complex that provides a wide range of goods and services, typically anchored by one or more department stores and designed to serve a broad geographical area.