Which of the following pricing strategies does NOT usually enhance the profits of firms with market power?
A) Marginal cost pricing
B) Price discrimination
C) Block pricing
D) Commodity bundling

Question

Quizplus · Accepted Answer

Marginal cost pricing would lead to lower prices and lower profits for a firm with market power. The other pricing strategies, price discrimination, block pricing, and commodity bundling, can all enhance profits for firms with market power by charging different prices to different segments of consumers or by bundling products together to increase overall demand.

Which of the Following Pricing Strategies Does NOT Usually Enhance