Yield management and price discrimination have enabled firms to increase profits and, at the same time,
A)reduce the cost of production.
B)capture some consumer surplus.
C)reduce transactions costs.
D)transfer some producer surplus to consumers.

Question

Quizplus · Accepted Answer

Yield management and price discrimination allow firms to charge different prices to different consumers based on their willingness to pay. This enables firms to capture some of the consumer surplus, which increases their profits. However, it does not necessarily reduce the cost of production, reduce transaction costs, or transfer producer surplus to consumers.

Yield Management and Price Discrimination Have Enabled Firms to Increase