Which of the following statements about price discrimination is false?
A) All forms of price discrimination are illegal.
B) Charging less for a second pizza that is identical to the first is an example of price discrimination.
C) Price discrimination is a method for a seller to capture some consumer surplus.
D) Compared to a single-price monopoly, the number of units sold increases when a monopoly price discriminates.
E) Price discrimination increases a monopoly's profit.

Question

Quizplus · Accepted Answer

Not all forms of price discrimination are illegal. Some forms of price discrimination, such as quantity discounts or student discounts, are legal and commonly used by businesses. However, some forms of price discrimination may be illegal under certain circumstances, such as if they discriminate based on protected characteristics such as race or gender.

Which of the Following Statements About Price Discrimination Is False