Without price discrimination,:
A) firms in industries with high fixed costs will have less incentive to innovate.
B) total surplus will be higher in all industries.
C) we would most likely see more product variation.
D) consumers with more elastic demands would most likely see lower prices.

Question

Quizplus · Accepted Answer

Without price discrimination, firms with high fixed costs may have less incentive to innovate because they cannot charge different prices to different consumers to cover their costs and fund innovation.

Without Price Discrimination