Relative to uniform-price policy, price discrimination across segmented markets (sometimes called third-degree price discrimination):
a. always reduces welfare.
b. always increases welfare.
c. may increase welfare if total output falls.
d. may increase welfare if total output rises.
d
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If the growth rate of real GDP and the rate of inflation in an economy are 2% and 1% respectively, the growth rate of nominal GDP in the economy must be:
A) 3%. B) 1%. C) 5%. D) 2%.
In economics, the study of the decisions of firms in industries where the profits of each firm depend on its interactions with other firms is called
A) profit analysis. B) market structure analysis. C) game theory. D) decision theory.
Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. Which of the following best describes Max's preferences?
A) d > b > e B) d = b = e C) a = b > c D) a = b > e
There are only increases in total surplus when a country exports a good, since more units of the country's output of that good are produced
a. True b. False Indicate whether the statement is true or false