Which of the following statements about price discrimination is correct?
A) Price discrimination is always more profitable than charging a single price.
B) A price discriminator would want to charge the highest price to those customers with the most elastic demand for his product.
C) To be successful, a price discriminator must assure that items can be resold between high- and low-price groups.
D) To maximize profit, a price discriminator distinguishes groups with different demands and charges higher prices to those with the more inelastic demand.
Correct Answer:
Verified
Q141: Even though firms in competitive price-searcher markets
Q142: Which of the following conditions is most
Q143: In competitive price-searcher markets, short-run economic losses
Q144: Some economists argue that competitive price-searcher markets
Q145: Which of the following provides the strongest
Q147: In long-run equilibrium, output is expanded to
Q148: Suppose housing construction is a price-searcher market
Q149: The traditional view of competitive price-searcher markets
Q150: In both price-taker and competitive price-searcher markets,
Q151: Airlines generally charge travelers willing to stay
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents