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 consumers in:

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