Firms price discriminate because, by doing so, they obtain a higher profit than by charging a single price.

Name: Firms price discriminate because, by doing so, they obtain a higher profit than by charging a single price.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Price discrimination allows firms to charge different prices to different groups of consumers based on their willingness to pay. This allows the firm to capture more of the consumer surplus, leading to higher profits.

Firms Price Discriminate Because, by Doing So, They Obtain a Higher