Price discrimination:
A)benefits those groups with a lower willingness to pay than others.
B)can be practiced by any firm with market power.
C)increases the profits of the firm.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

Price discrimination is a pricing strategy where a firm charges different prices to different customers or groups for the same product or service, based on their willingness to pay. This benefits groups with lower willingness to pay, and can only be practiced by firms with market power. Price discrimination can increase profits for the firm as it allows for the full exploitation of different customers' willingness to pay. Therefore, all of these statements are true.

Price Discrimination