Why Might a Producer Practice Price Discrimination

question 254

Multiple Choice

Why might a producer practice price discrimination?

• A)to make its products more affordable to those with low incomes
• B)to maximize economic efficiency
• C)to maximize profits
• D)to maximize quantity demanded

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Definitions:

Largely Self-Sufficient

Describes an entity or community that can fulfill nearly all of its needs without external assistance.

Before Specialization

Refers to the economic state or condition prior to the allocation of resources towards the production of specific goods or services in which they have a comparative advantage.

Exchange

The act of trading goods, services, currencies, or other instruments of value between parties.

Families

Families denote groups of individuals related by blood, marriage, or adoption, often living together and providing emotional and economic support to one another.