Which of the Following Statements Is TRUE About Price Discrimination

question 253

Multiple Choice

Which of the following statements is TRUE about price discrimination?

• A) Price discrimination makes consumers worse off due to higher prices.
• B) Price discrimination leads to deadweight loss and therefore makes the market less efficient.
• C) Price-discriminating monopolists often produce more output than single-price monopolists and increase total surplus in the process.
• D) Price discrimination is illegal in the United States.

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Definitions:

Tri-country War

A hypothetical conflict involving three distinct nations, often used to describe scenarios in military strategy or historical analysis.

African Slave Labor

The forcible employment of African people, primarily in the Americas, from the 16th to the 19th centuries, under conditions of slavery.

Plantation Labor

Work associated with the operation of large agricultural estates, often involving the cultivation of crops like cotton, sugar, and tobacco, historically reliant on slave or indentured labor.