Which of the following is true of perfect price discrimination compared to charging a single price?
A)Output is greater.
B)Output is the same, but profit is higher.
C)Output is lower, but profit is higher.
D)Output is lower, and profit could be higher or lower.
E)Output is the same, but profit is lower.

Question

Quizplus · Accepted Answer

In perfect price discrimination, the firm charges each consumer their maximum willingness to pay, leading to an increase in output compared to a single price strategy, as the firm can sell to more consumers at different prices.

Which of the Following Is True of Perfect Price Discrimination