In a market without price discrimination
A)when the firm lowers price to attract new customers, all customers pay the lower price.
B)any change in price will raise profits.
C)total revenue will fall.
D)businesses do not experience economic surplus.

Question

Quizplus · Accepted Answer

In a market without price discrimination, all customers pay the same price. Therefore, when the firm lowers the price to attract new customers, all customers pay the lower price. This means that option A is the correct choice. Option B is incorrect because there is no guarantee that any change in price will raise profits. Option C is possible, but not a necessary outcome, as it depends on the price elasticity of demand. Option D is also incorrect as businesses can experience economic surplus in a market without price discrimination.

In a Market Without Price Discrimination