For a firm to maximize total profits through price discrimination,it should
A)charge a low price to high-value consumers and a high price to low-value consumers
B)charge a high price to high-value consumers and a high price to low-value consumers
C)charge a low price to high-value consumers and a low price to low-value consumers
D)charge a high price to high-value consumers and a low price to low-value consumers

Question

​For a firm to maximize total profits through price discrimination,it should
A)​charge a low price to high-value consumers and a high price to low-value consumers
B)charge a high price to high-value consumers and a high price to low-value consumers
C)charge a low price to high-value consumers and a low price to low-value consumers
D)​charge a high price to high-value consumers and a low price to low-value consumers

Quizplus · Accepted Answer

Price discrimination involves charging different prices to different groups of consumers based on their willingness to pay. To maximize total profits, the firm should charge a high price to high-value consumers who are willing to pay more for the product, and a lower price to low-value consumers who are willing to pay less. Therefore, option D is the best choice since it suggests charging a high price to high-value consumers and a low price to low-value consumers.

​For a Firm to Maximize Total Profits Through Price Discrimination,it

For a Firm to Maximize Total Profits Through Price Discrimination,it