Which of the following reasons cannot explain quantity rationing by Pfeizer:

1) Inelastic demand conditions

2) Decreasing returns to scale

3) Maximizing market share

4) Signi cant market power

Pfeizer is thinking to discriminate among European consumers assigning a dierent price in each country according to the prevailing demand schedules. Compared with a uniform pricing scheme throughout the EU

1) Social welfare will be higher if quantities sold are higher

2) Social welfare will be always higher

3) Social welfare will be higher if quantities sold are lower

4) Social welfare will be always lower