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Price Discrimination Allows Firms to Make More Money by Partitioning

Question 12

Multiple Choice

Price discrimination allows firms to make more money by partitioning their customers into at least two distinct groups, those that:


A) the firm wants to retain as customers and those that will decide to buy elsewhere.
B) have a similar elasticity of demand and those who are unaware of their demand elasticity.
C) will get a discount and those that are willing to pay more.
D) differ from their usual customer type and those with characteristics common to their customer base.
E) are willing to pay more and those that are easily misled by discounts.

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