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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