Price discrimination is motivated by the firm's desire to:
A)penalize customers who do not match the racial or ethnic profile of the firm.
B)
Reduce the deadweight loss attributable to monopoly pricing.
C)
Affect social justice through long-run sustainable pricing strategies that benefit all community stakeholders.
D)
Increase producer surplus.

Question

Quizplus · Accepted Answer

Price discrimination is primarily motivated by a firm's desire to increase producer surplus by capturing more consumer surplus. This involves charging different prices to different customers for the same product, based on their willingness to pay, rather than factors like race or ethnicity, social justice concerns, or reducing deadweight loss.

Price Discrimination Is Motivated by the Firm's Desire To