Which of the following is true of price discrimination? a. It involves charging whatever the market...
Which of the following is true of price discrimination?
a. It involves charging whatever the market will bear.
b. In a competitive market, prices may have to be higher than in a market where the firm has a monopoly.
c. It makes economic sense to charge the same prices in different countries.
d. It exists whenever consumers in different countries are charged the same price for the same product, irrespective of variations.
e. It cannot help a company maximize its profits.
Homework Answers
Answer
Option a
a. It involves charging whatever the market will bear.
The strategy is to charge a price equal to the willingness to pay by the market segmentation which is a price discrimination.
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