Relative to single price policy third-degree price discrimination Select one: may increase welfare if total output rises. b. may increase welfare if total output falls. O c. always reduces welfare. Od. always increases welfare.

Relative to single price policy third-degree price discrimination Select one: may increase welfare if total output rises. b. may increase welfare if total output falls. O c. always reduces welfare. Od. always increases welfare.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 40P: Assume that the supply of law-skilled worker is fairly elastic, but the employers demand for such...

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Concept explainers

Product and Price Bundling

Product and price bundling is used as a marketing strategy by businesses, where complementary products and services are combined and sold as a package deal. This bundled price is usually less than the total price of the individual products if they were to be sold separately. When bundled and sold, each product is sold at a reduced price. Using a price bundling strategy helps increase the average revenue per user and also increases the engagement with the user. This happens as the perceived value of the bundled products is more than the individual products.

Question

Relative to single price policy third-degree price discrimination
Select one:
a.
may increase welfare if total output rises.
b.
may increase welfare if total output falls.
O c. always reduces welfare.
O d. always increases welfare.

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