Price discrimination is good if output:
A) falls under price discrimination.
B) stays the same under price discrimination.
C) increases under price discrimination.
D) is no longer produced under price discrimination.

Question

Quizplus · Accepted Answer

Price discrimination allows firms to increase their output and maximize profits by charging different prices to different customers based on their willingness to pay. This means that more consumers are able to access the product or service at a price they can afford, and the firm can sell more products overall, resulting in an increase in output. Therefore, the best choice is C, which states that output increases under price discrimination.

Price Discrimination Is Good If Output