Monopoly Mcqs for Economics


Q.  Which of the follow statements about price discrimination is not true ?

a. Perfect price discrimination generates a deadweight loss
b. Price discrimination can raise economic welfare.
c. price discrimination requires that seller be able to separate buyers according to their willingness to pay.
d. Price discrimination increases a monopolist’s profits.
e. For a monopolist to engage in price discrimination buyers must be unable to engage in arbitrage.


ANSWER: See Answer
 
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