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Question

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

A Perfect price discrimination generates a deadweight loss. Correct Answer Incorrect Answer
B Price discrimination can raise economic welfare. Correct Answer Incorrect Answer
C Price discrimination requires that the seller be able to separate buyers according to their willingness to pay. Correct Answer Incorrect Answer
D Price discrimination increases a monopolist's profits. Correct Answer Incorrect Answer
E For a monopolist to engage in price discrimination, buyers must be unable to engage in arbitrage. Correct Answer Incorrect Answer

Solution

Perfect price discrimination does not generate any deadweight loss.

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