Which of the Following Is the Main Principle Behind Pricediscrimination

question 27

Multiple Choice

Which of the following is the main principle behind pricediscrimination?

• A)If the demand curves are different, it is more profitable to set different prices in different markets than a single price that
• Covers all markets.
• B)To maximize profit the firm should set a higher price in markets with more inelastic demand.
• C)Arbitrage makes it difficult for a firm to set different prices in different markets thereby reducing the profit from price
• Discrimination.
• D)All of the answers are correct.

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Definitions:

Desegregated Schools

Educational institutions that have been integrated, allowing students of different racial, ethnic, or other segregations to learn together.

Racial Groups

Categories of people identified by shared physical or social qualities into groups considered by society to be distinct.

Intergroup Conflict

Disputes or hostilities between different groups, often arising from competition for resources, differences in values, or social status.

Outgroup

A social group to which an individual does not identify or belong, often viewed with prejudice or hostility.