Which is not true of price discrimination?
A)Successful price discrimination requires that different segments of the market have different demand elasticities.
B)Successful price discrimination will provide the firm with more profit than if it does not discriminate.
C)Successful price discrimination implies that the producer can separate customers into easily identifiable groups.
D)Successful price discrimination will generally result in a lower level of output than would be the case under a single-price monopoly.

Question

Quizplus · Accepted Answer

Price discrimination typically results in a higher level of output compared to a single-price monopoly because it allows the firm to sell additional units to lower-valued segments of the market at lower prices, while still charging higher prices to segments with less elastic demand.

Which Is Not True of Price Discrimination