Question #48648

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) E. For a monopolist to engage in price discrimination buyers must be unable to engage in arbitrage.

Answer: Which of the follow statements about price discrimination is not true Perfect price discrimination generates a deadweight loss.

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