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Compared to Setting a Single Price,if a Firm Can Price

Question 326

Multiple Choice

Compared to setting a single price,if a firm can price discriminate it


A) makes a larger economic profit.
B) makes a lower economic profit.
C) makes zero economic profit.
D) has no change in its economic profit from when it set a single price.
E) might increase, decrease, or not change its economic profit depending on whether as a single-price monopoly its marginal revenue curve was above, below, or the same as its demand curve.

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