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

Question

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This statement is true. By differentiating the products and pricing them differently, the publisher can extract the maximum possible price from each type of customer, allowing them to maximize their profits. The hardcover books are priced higher since they are targeted towards the die-hard fans who are willing to pay more for their books, while paperbacks are priced lower to appeal to the more price-sensitive customers.

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