If Firms That Practice Second Degree Price Discrimination Use More

question 30

Multiple Choice

If firms that practice second degree price discrimination use more block prices,

• A) both consumer surplus and welfare will decrease.
• B) both consumer surplus and welfare will increase.
• C) consumer surplus will decrease, but welfare will increase.
• D) consumer surplus will increase, but welfare will decrease.

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Definitions:

Population Mean

The average of a set of characteristics, quantities, or values for all individuals or items in a defined population.

Population Variance

A measure of how data points in a population are spread out from the mean.

T Distribution

A type of probability distribution that is symmetrical and bell-shaped like the normal distribution but has heavier tails, used especially for small sample sizes.

Degrees Of Freedom

The total count of values that can change in the ultimate calculation of a statistical figure.