By selling hardcover books to die-hard fans and paperback books to less enthusiastic readers,the publisher is able to price discriminate and raise its profit.

Question

Quizplus · Accepted Answer

Pricing discrimination is a common strategy used by many businesses, including publishers, to maximize profits by charging different prices for the same product to different consumer groups based on their willingness to pay. By offering hardcover editions at a higher price to fans who are willing to pay more and paperback editions at a lower price to less committed readers, publishers can segment their market and increase their revenue. Therefore, the statement is true.

By Selling Hardcover Books to Die-Hard Fans and Paperback Books