Price discrimination may be:
A) good in industries with high fixed costs.
B) good in industries with high marginal costs.
C) less efficient if the number of consumers in the market is low.
D) less efficient if it leads to higher prices.

Question

Quizplus · Accepted Answer

Price discrimination can be beneficial in industries with high fixed costs, as it allows firms to maximize profits by charging different prices to different groups of consumers. This is because the high fixed costs of production must be paid regardless of how many units are sold, and therefore price discrimination helps firms to increase revenue and cover their costs.

Price Discrimination May Be