When price discrimination occurs, the producer's profit is _____ if the producer charges each customer the same profit-maximizing price where marginal revenue equals _____ cost.
A) the same as; marginal
B) more than; marginal
C) less than; marginal
D) the same as; average total

Question

Quizplus · Accepted Answer

Price discrimination allows the producer to capture more consumer surplus by charging different prices to different customers, leading to higher profits than charging a single price where marginal revenue equals marginal cost.

When Price Discrimination Occurs, the Producer's Profit Is _____ If