The key idea behind price discrimination is to convert consumer surplus into
A) deadweight loss.
B) a barrier to entry.
C) economic profit.
D) total cost.
E) monopoly power.

Question

Quizplus · Accepted Answer

Price discrimination allows firms to charge different prices to different groups of consumers based on their willingness to pay, which can increase firms' economic profit. By converting some of the consumer surplus into profits, firms can capture more of the overall value in the market.

The Key Idea Behind Price Discrimination Is to Convert Consumer