What Is the Primary Benefit of Price Discrimination

question 45

Multiple Choice

What is the primary benefit of price discrimination?

• A) There is no benefit; discrimination of any kind is wrong.
• B) Charging multiple prices generates more profit for firms and matches more buyers and sellers in the marketplace.
• C) It converts firms that were price makers into price takers.
• D) All surplus is transferred from the producer to the consumer.
• E) It takes a market with varying demand elasticities and makes them more inelastic.