Which of the following pricing strategies does not usually enhance the profits of firms with market power?
A)Price matching.
B)Cross-subsidies.
C)Two-part pricing.
D)Marginal cost pricing.

Question

Quizplus · Accepted Answer

Marginal cost pricing would not enhance the profits of firms with market power as it would result in lower prices and lower profit margins. Firms with market power would prefer to charge higher prices and earn higher profit margins. The other options (price matching, cross-subsidies, and two-part pricing) can be used by firms with market power to enhance their profits.

Which of the Following Pricing Strategies Does Not Usually Enhance