Which 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) It exists when price differences depend critically on differences in the costs of production of serving 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 consumers, leading to higher total profits compared to a single-price strategy.

Which Is True of Price Discrimination