A price-discriminating company can attract additional customers by _____, this will add to its profits if the _____.
A)shifting the company's demand curve to the left; price is above the customer's marginal benefit
B)shifting the company's demand curve to the left; price is below the company's marginal cost
C)reducing price; price is above the company's marginal benefit
D)reducing price; price is above the company's marginal cost

Question

Quizplus · Accepted Answer

A price-discriminating company can increase its profits by reducing prices to attract additional customers, provided that the price remains above the company's marginal cost. This allows the company to cover its costs and make a profit on the additional sales.

A Price-Discriminating Company Can Attract Additional Customers by _____, This