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

Question

Quizplus · Accepted Answer

Not all forms of price discrimination are illegal. Some forms are perfectly legal, such as offering discounts to students or senior citizens. However, certain forms of price discrimination, such as discrimination based on race or gender, are illegal under anti-discrimination laws.

Which of the Following Statements About Price Discrimination Is False