The more block prices a monopoly can set instead of setting a single price,
A) the smaller the deadweight loss.
B) the more producer surplus.
C) the larger the total welfare.
D) All of the above.
Question 2
Declining-block quantity discrimination makes sense if
A) buyers of smaller quantities are more price sensitive than buyers of larger quantities.
B) buyers of smaller quantities are less price sensitive than buyers of larger quantities.
C) demand for the good is perfectly elastic.
D) the lower price for larger quantities encourages all consumers to purchase the larger quantity.
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