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First- Degree and Second- Degree Price Discrimination Are Similar in Each

Question 3

Multiple Choice

First- degree and second- degree price discrimination are similar in each of the following ways except which one?


A) In both practices, firms earn greater economic profit than if they charged a single price for every unit.
B) They both convert all possible consumer surplus into additional economic profit.
C) In both practices, firms produce more than if they charged a single price.
D) In both practices, consumers pay higher prices for the first units that they buy.

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