Questions: Question 10 1 pts 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. ii only ii and iii i, ii, and iii i and ii i and iii

The answer is i and iii

This statement is true. Price discrimination allows a firm to capture consumer surplus by charging different prices to different consumers based on their willingness to pay, thereby converting consumer surplus into economic profit.

This statement is not necessarily true. While monopolies often engage in price discrimination, it is not a requirement. Firms in monopolistic competition or oligopolies can also practice price discrimination if they have some degree of market power and can segment the market.

This statement is true. For a firm to effectively price discriminate, it must be able to distinguish between different groups of consumers based on their willingness to pay and prevent resale between these groups.