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 as profit, thus increasing economic profit. It does not increase consumer surplus or deadweight loss.

If a Firm Successfully Price Discriminates, It Increases I