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

---

Definitions:

Short-Term Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or one business cycle, whichever is longer.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Capital Structure Decisions

Strategic choices made by a firm regarding the mix of financial securities, such as debt and equity, to optimize its funding and operational goals.

Shares Of Stock

Units of ownership in a corporation or financial asset, providing a proportion of the profit to shareholders in the form of dividends.