Price discrimination is welfare reducing.
A) False, price discrimination can increase the coverage of a market thereby increasing welfare.
B) False, price discrimination limits the coverage of a market thereby increasing welfare.
C) True, price discrimination limits the coverage of a market thereby increasing welfare.
D) True, price discrimination can increase the coverage of a market thereby increasing welfare.

Question

Quizplus · Accepted Answer

Price discrimination can allow firms to serve more customers by charging different prices based on the customer's willingness to pay, potentially increasing overall market efficiency and welfare.

Price Discrimination Is Welfare Reducing