Which of the following is the main principle behind pricediscrimination?
A) If the demand curves are different, it is more profitable to set different prices in different markets than a single price that
Covers all markets.
B) To maximize profit the firm should set a higher price in markets with more inelastic demand.
C) Arbitrage makes it difficult for a firm to set different prices in different markets thereby reducing the profit from price
Discrimination.
D) All of the answers are correct.
Correct Answer:
Verified
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