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Price Discrimination Is a Rational Strategy for a Profit-Maximising Monopolist

Question 190

Multiple Choice

Price discrimination is a rational strategy for a profit-maximising monopolist when:


A) there is no opportunity for arbitrage across market segmentations
B) there is an opportunity for arbitrage across market segmentations
C) consumers are unable to be segmented into identifiable markets
D) they want to increase the deadweight loss that results from profit-maximising behaviour

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