When firms price discriminate, they
A)sell to new consumers who would not have bought at the profit-maximizing uniform price but lose sales to existing consumers because of the higher prices.
B)sell to new consumers that would not have bought at the profit-maximizing uniform price.
C)lose surplus from consumers who would have bought at the profit-maximizing uniform price.
D)None of the above.

Question

Quizplus · Accepted Answer

Price discrimination allows firms to sell to new consumers who would not have bought at the profit-maximizing uniform price by offering different prices to different consumers based on their willingness to pay, without necessarily losing sales to existing consumers.

When Firms Price Discriminate, They