Which of the following is true of price discrimination as a part of international pricing strategy?
A)The more competitors there are,the lesser consumers' bargaining power will be.
B)The more competitors there are,the less likely consumers will be to buy from the firm that charges the lowest price.
C)A firm may charge a higher price for its product in a country where competition is limited than in one where competition is intense.
D)Many competitors cause low elasticity of demand.
E)If a firm raises its prices above those of its competitors,consumers will refuse to switch to the competitors' products.

Question

Quizplus · Accepted Answer

Price discrimination is when a company charges different prices for the same product or service in different markets. A firm with limited competition in a particular market can use price discrimination to increase its profits by charging a higher price for its product. This is because consumers have fewer options and may be willing to pay a higher price for the product. In a more competitive market, a firm may not be able to charge such a high price as consumers have more options to choose from. Therefore, option C is true.

Which of the Following Is True of Price Discrimination as a Part