In the small country of Talisman, the liquor industry is monopolized by a single producer Best Drinks Inc.Best Drinks charges high end customers like 5-star hotels a much higher price than it charges local pubs.Identify the correct statement from the following.

Question

Quizplus · Accepted Answer

The statement "Best Drinks is aware of the variations in the valuation of its products by different consumer segments" suggests that the company is practicing price discrimination, which involves charging different prices to different groups of customers based on their willingness to pay. This implies that the company knows that different consumers value its product differently and is seeking to capture some of that value in the form of higher prices from willing buyers. Options B, C, and D are not entirely accurate or precise. While price discrimination can help to maximize profits, reduce costs, and increase consumer surplus, it is not the only or primary reason for this strategy.

In the Small Country of Talisman, the Liquor Industry Is