Which of the following is true regarding price discrimination?
i.It converts consumer surplus to economic profit.
ii.A price discriminator must be a monopoly.
iii.To be able to price discriminate,the firm must be able to identify different types of buyers.
A) i and ii
B) i and iii
C) ii and iii
D) ii only
E) i, ii, and iii

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices to different types of buyers. This can convert consumer surplus to economic profit (i) and requires the ability to identify different types of buyers (iii). However, a firm does not necessarily have to be a monopoly to price discriminate (ii). Therefore, only statements i and iii are true.

Which of the Following Is True Regarding Price Discrimination