Firms that can price discriminate between customers do so to
A)increase consumer surplus.
B)increase employment.
C)increase economic profit.
D)decrease the quantity they produce.
E)increase producer surplus and deadweight loss.

Question

Quizplus · Accepted Answer

Price discrimination allows firms to charge different prices to different groups of customers based on their willingness to pay. This allows the firm to capture more consumer surplus and increase their economic profit. By charging higher prices to customers with a higher willingness to pay, they can extract more value from these customers and increase their profits.

Firms That Can Price Discriminate Between Customers Do So to