Two objectives a company owner tries to achieve through price discrimination are to _____ and to _____.
A)charge each person the highest possible price; sell to the maximum number of customers
B)charge each person the highest possible price; reduce the marginal cost
C)sell to every customer whose marginal benefit exceeds the firm's marginal cost; charge each person the highest possible price
D)sell to every customer whose marginal benefit exceeds the firm's marginal cost; sell to the maximum number of customers

Question

Quizplus · Accepted Answer

The two objectives a company owner tries to achieve through price discrimination are selling to every customer whose marginal benefit exceeds the firm's marginal cost and charging each person the highest possible price. Therefore, the best choice is C as it includes both objectives. Option A is incorrect because it only includes one objective and option B is incorrect because reducing the marginal cost is not one of the objectives of price discrimination. Option D includes the first objective but doesn't include the second objective.

Two Objectives a Company Owner Tries to Achieve Through Price