An Important Lesson of Price Discrimination Is That

question 231

Multiple Choice

An important lesson of price discrimination is that:

• A) price discrimination will always lead to lower profits in one of the two markets.
• B) firms can increase profits by differentiating their product attributes.
• C) all firms can perfectly price discriminate.
• D) it only increases profits when the demand curves in two different markets are not the same.

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Definitions:

Explanation Developed

A detailed account or interpretation of a concept, situation, or problem.

Routine Message

Regular, everyday communications that convey standard information or procedures.

Act Of Persuasion

The process of influencing someone's beliefs, attitudes, intentions, motivations, or behaviors through argument, reasoning, or appeal.

Explanation

The process of making something clear or understandable through detailed description or demonstration.