Price Discrimination Is Considered Bad When ________, but Good When

question 131

Multiple Choice

Price discrimination is considered bad when ________, but good when ________.

• A) it increases output; it decreases output
• B) it decreases output; it increases output
• C) it increases deadweight loss; it decreases deadweight loss
• D) it increases prices; it decreases prices

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Definitions:

Maximizing Profits

The process of making the highest possible profit from business operations within the given market conditions.

Code of Ethics

A set of principles designed to guide the behavior and decision-making of members within an organization or profession.

Utilitarian Benefits

The practical or useful advantages gained from a product, service, or action, focusing on its functionality or utility.

Consumer Protection Agency

Governmental organizations designed to uphold the rights of consumers and ensure fair trade, competition, and accurate information in the marketplace.