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Braylea Kelly
on Dec 12, 2024

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Firms that engage in price discrimination

A) will earn less profit than those that do not discriminate.
B) will earn more profit than those that do not discriminate.
C) are biased against certain buyers in the market.
D) will always produce less output than firms that do not discriminate.

Earn Less Profit

A scenario where a business or individual generates a lower amount of financial gain from operations or investments.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets or to different customers.

Earn More Profit

Refers to the increase in net revenue a company achieves through strategies such as cost reduction, price adjustment, or market expansion.

  • Assess the impact of price discrimination on both the revenue and output of a firm.
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Alisa RodriguezDec 17, 2024
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