Price discrimination is considered bad when:
A) total surplus increases.
B) total surplus decreases.
C) deadweight loss is diminished.
D) it is practiced by any firm.

Question

Quizplus · Accepted Answer

Price discrimination is considered bad when it leads to a decrease in total surplus, which occurs when some consumers have to pay a higher price than they would in a competitive market. This causes a transfer of surplus from consumers to producers, reducing overall economic welfare. Therefore, B is the correct answer. The other options are not relevant to the concept of price discrimination.

Price Discrimination Is Considered Bad When