Which of the Following Statements Is True of Price Discrimination

question 88

Multiple Choice

Which of the following statements is true of price discrimination?

• A) Successful price discrimination will provide the firm with lower total profits than if it did not discriminate.
• B) Successful price discrimination will provide the firm with more profit than if it did not discriminate.
• C) Successful price discrimination will generally result in a lower level of output than would be the case under a single-price monopoly.
• D) Successful price discrimination occurs when there are differences in the costs of producing for different groups of buyers.

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Definitions:

Populations

The entire group of individuals or items that statistical analysis is based upon.

Alternative Hypothesis

A hypothesis that contradicts the null hypothesis, suggesting there is a significant difference or effect.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect in a given set of observations, used as a starting point for statistical testing against the alternative hypothesis.

Alternative Hypothesis

A statement that suggests a possible difference or effect, typically to be tested against a null hypothesis in statistical analysis.