Why would a firm price discriminate? Because price discrimination allows the firm to
A) increase consumer surplus
B) create brand multiplication
C) select the best consumers who are willing to pay the highest price
D) convert consumer surplus into economic profit
E) shift its demand curve to the right

Question

Quizplus · Accepted Answer

Price discrimination allows a firm to charge different prices to different consumers based on their willingness to pay, thereby converting consumer surplus into additional economic profit for the firm.

Why Would a Firm Price Discriminate? Because Price Discrimination Allows