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Arnie's Airlines Is a Monopoly Airline That Is Able to Price

Question 8

Multiple Choice

Arnie's Airlines is a monopoly airline that is able to price discriminate. If Arnie's decides to price discriminate, then


A) Arnie's profit increases.
B) Arnie's revenues decrease.
C) consumer surplus increases.
D) Arnie's sells fewer tickets.
E) Arnie can no longer set a price that depends upon the buyer's willingness to pay.

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