A Firm Practices Price Discrimination by Selling at a High

Multiple Choice

A firm practices price discrimination by selling at a high price in its larger market, Market A, and a lower price in its smaller market, Market B. If this firm is forced to sell at a single-price in both markets and opts for the original price in Market A, the new single-pricing strategy makes:

A) consumers in both Market A and Market B worse off.
B) consumers in Market A no worse off, but consumers in Market B worse off.
C) consumers in Market B no worse off, but consumers in Market A worse off.
D) consumers in both markets better off, as single pricing is always better for consumers than price discrimination.