Which of the Following Statements About Price Discrimination Is Correct

question 155

Multiple Choice

Which of the following statements about price discrimination is correct?

• A) A price discriminating firm will want to charge a higher price to the consumer group with the more inelastic demand.
• B) A firm will always be able to increase its profit by price discriminating rather than charging the same price to all customers.
• C) Price discrimination will be most effective when buyers can easily resell the product amongst themselves.
• D) Each consumer will pay a higher price when a firm is a price discriminator than would be the case if all customers were charged the same price.

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