Multiple Choice
When a firm uses price discrimination successfully, the result is that producer surplus _____ while deadweight loss _____ compared to a single-price monopoly.
A) rises; rises because less output is produced with price discrimination
B) rises; falls because output increases with price discrimination
C) falls; rises because less output is produced with price discrimination
D) falls; falls because output increases with price discrimination
Correct Answer:
Verified
Correct Answer:
Verified
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