An oligopoly that engages in price discrimination will charge higher prices to customers with the most elastic demand.

Question

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An oligopoly that engages in price discrimination will charge different prices to different customers in order to maximize profits, but they will not necessarily charge higher prices to customers with the most elastic demand. In fact, they are more likely to charge a lower price to customers with more elastic demand in order to capture that segment of the market.

An Oligopoly That Engages in Price Discrimination Will Charge Higher