A firm practicing group price discrimination that has constant marginal cost will

Question

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A firm practicing group price discrimination with constant marginal cost will maximize total profit by charging each group a different price based on their willingness to pay. This means that the firm will charge the highest possible price for each group without losing any customers to a lower-priced competitor. This strategy leads to higher profits for the firm since it captures more of the consumer surplus. Charging the same price to all groups (B) would not be a profitable strategy since the firm would miss out on potential profits from groups with a higher willingness to pay. Acting like a monopoly and treating all groups the same (C) would not lead to optimal profits since the firm could potentially earn more by charging different prices based on groups' willingness to pay. Setting p = MC (D) would be the profit-maximizing strategy in a perfectly competitive market, but in a market with price discrimination, the firm would charge higher prices to groups with a higher willingness to pay.

A Firm Practicing Group Price Discrimination That Has Constant Marginal