Which of the Following Is NOT a Principle of Price

question 260

Multiple Choice

Which of the following is NOT a principle of price discrimination?

• A) It is more profitable to set different prices in markets with different demand curves than a single price that covers all markets.
• B) To maximize profit the firm should set a higher price in markets with more elastic demand.
• C) To maximize profit the firm should set a higher price in markets with more inelastic demand.
• D) Arbitrage makes it difficult for a firm to set different prices in different markets thereby reducing the profit from price discrimination.

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