Which of the Following Statements Is Correct

question 92

Multiple Choice

Which of the following statements is correct?

• A) Price discrimination is always more profitable than charging a single price.
• B) A price discriminator would want to charge the highest price to those customers with the most elastic demand for his product.
• C) To be successful, a price discriminator must assure that items can be resold between high- and low-price groups.
• D) To maximize profit, a price discriminator distinguishes groups with different demands and charges higher prices to those with the more inelastic demand.

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Definitions:

Strategic Alliance

A partnership formed to create competitive advantage on a worldwide basis.