Price discrimination adds to social welfare in the form of (i)
Increased total surplus.
(ii)
Reduced costs of production.
(iii)
Increased consumer surplus.
A)(i) only
B)(i) and (ii) only
C)(i) and (iii) only
D)(i), (ii), and (iii)

Question

Quizplus · Accepted Answer

Price discrimination can increase total surplus by allowing firms to serve more consumers who are willing to pay different prices, thus increasing overall efficiency. However, it does not necessarily reduce production costs or increase consumer surplus.

Price Discrimination Adds to Social Welfare in the Form of (I)