The goal of price discrimination is to

Question

Quizplus · Accepted Answer

Price discrimination is used to convert consumer surplus to producer surplus and maximize profits. It involves charging different prices to different groups of consumers based on their willingness to pay. By doing so, a company can capture more of the total value that consumers place on its product, increasing its profits. Therefore, the correct choice is both (a) and (b). Option D is incorrect because price discrimination actually simplifies pricing decisions by allowing companies to set prices based on the different segments of their customer base.

The Goal of Price Discrimination Is to