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When a Firm Uses Price Discrimination Successfully, the Result Is

Question 290

Multiple Choice

When a firm uses price discrimination successfully, the result is that producer surplus _____ while deadweight loss _____ compared to a single-price monopoly.


A) rises; rises because less output is produced with price discrimination
B) rises; falls because output increases with price discrimination
C) falls; rises because less output is produced with price discrimination
D) falls; falls because output increases with price discrimination

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