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Which of the Following Is False About Quantity Discounts

Question 76

Multiple Choice

Which of the following is false about quantity discounts?


A) Quantity discounts are a form of price discrimination which allow a seller to charge a higher price for the first unit than for later units.
B) Quantity discounts allow price discriminating producers to extract additional consumer surplus from customers.
C) Price discrimination, such as offering quantity discounts, can result in a greater output, and thus greater consumer surplus and producer surplus, by a monopolist than if price discrimination was not possible.
D) Quantity discounts benefit those customers who would not buy any of a monopolist's product at the price that the monopolist would charge if it could not price discriminate.

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