Which of the following statements is true of price discrimination?
A)Successful price discrimination will provide the firm with lower total profits than if it did not discriminate.
B)Successful price discrimination will provide the firm with more profit than if it did not discriminate.
C)Successful price discrimination will generally result in a lower level of output than would be the case under a single-price monopoly.
D)Successful price discrimination occurs when there are differences in the costs of producing for different groups of buyers.

Question

Quizplus · Accepted Answer

Successful price discrimination allows a firm to capture more consumer surplus by charging different prices to different groups based on their willingness to pay, leading to higher profits than charging a single price to all consumers.

Which of the Following Statements Is True of Price Discrimination