1892EconomicsMedium
Which of the follow statements about price discrimination is not true?
APrice discrimination can raise economic welfare.
Bprice discrimination requires that seller be able to separate buyers according to their willingness to pay.
CFor a monopolist to engage in price discrimination buyers must be unable to engage in arbitrage.
DPrice discrimination increases a monopolist’s profits.
EPerfect price discrimination generates a deadweight loss
Correct answer
E. Perfect price discrimination generates a deadweight loss
Explanation
The correct answer is Perfect price discrimination generates a deadweight loss.