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What Is the Result When a Monopolist Is Able to Price-Discriminate

Question 18

Multiple Choice

What is the result when a monopolist is able to price-discriminate?


A) Both its profits and consumer surplus tend to increase.
B) Both its profits and consumer surplus tend to decrease.
C) Its profits tend to increase and consumer surplus tends to fall.
D) Its profits tend to fall and consumer surplus tends to increase.

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