If a firm successfully price discriminates,it increases
i.consumer surplus.
ii.deadweight loss.
iii.economic profit.
A) i only
B) ii only
C) iii only
D) i and iii
E) i and ii

Question

Quizplus · Accepted Answer

Price discrimination allows a firm to capture more consumer surplus, turning it into additional economic profit, and can reduce deadweight loss by selling to consumers who would not buy at a higher, single price.

If a Firm Successfully Price Discriminates,it Increases