What Is the Key Characteristic of Profit Maximizing Price Discrimination

question 90

Multiple Choice

What is the key characteristic of profit maximizing price discrimination that distinguishes intertemporal price discrimination from peak-load pricing?

• A) Peak-load pricing does not require MC = MR.
• B) Marginal revenue may be different across different groups of buyers under intertemporal price discrimination.
• C) Marginal costs are independent across time periods under peak-load pricing.
• D) Marginal revenue must be constant under both pricing schemes.

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