Through price discrimination, ﬁrms can capture some or most of the consumer surplus in a market.

Question

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Price discrimination allows firms to charge different prices to different groups of consumers based on their willingness to pay. This can result in higher prices for some consumers and capture some or most of the consumer surplus, which is the difference between the maximum price a consumer is willing to pay for a product and the actual price they pay.

Through Price Discrimination, ﬁRms Can Capture Some or Most of the Consumer