17、Compared to using a single price in a market characterized by monopolistic competition, using price discrimination when two customer groups have different demand elasticities is least likely to result in:

A. new productive ventures.

B. an increase in total output.

C. lower prices for both groups.

D. a reduction in allocative inefficiency.

[此贴子已经被作者于2008-11-7 13:39:06编辑过]

17、Compared to using a single price in a market characterized by monopolistic competition, using price discrimination when two customer groups have different demand elasticities is least likely to result in:

A. new productive ventures.

B. an increase in total output.

C. lower prices for both groups.

D. a reduction in allocative inefficiency.

  
Correct answer = C

"Monopoly," Michael Parkin
2008 Modular Level I, Vol. 2, pp. 191-196
Study Session 5-19-c
explain price discrimination, and why perfect price discrimination is efficient
The prices for the group with inelastic demand will increase. For example, air travelers, business versus vacationers, face different demand curves. Business travelers end up paying high and vacationers benefit by paying less. 

thx

d