Historically,price discrimination was considered illegal in all instances.More recently,antitrust authorities have discovered that
A) price discrimination can increase the coverage of a market thereby increasing welfare.
B) price discrimination limits the coverage of a market thereby increasing welfare.
C) price discrimination limits the coverage of a market thereby decreasing welfare.
D) price discrimination can increase the coverage of a market thereby decreasing welfare.

Question

Quizplus · Accepted Answer

Antitrust authorities have recognized that in some cases, price discrimination can actually benefit consumers and increase overall welfare. By charging different prices to different groups of consumers based on their willingness to pay, firms can expand their customer base and increase overall sales. This can lead to lower costs and prices for consumers, which can ultimately increase welfare. However, it is important to note that not all forms of price discrimination are legal or beneficial, and antitrust authorities still closely scrutinize many pricing practices to ensure that they do not harm competition or consumers.

Historically,price Discrimination Was Considered Illegal in All Instances