In general, price discrimination exists because:
A) higher prices are required when costs are higher.
B) lower prices are possible when profits are not a goal of the entrepreneur.
C) higher prices are charged because some customers are willing to pay more.
D) lower prices encourage arbitrage.

Question

Quizplus · Accepted Answer

Price discrimination exists because some customers are willing to pay more than others. By charging different prices based on the customer's ability and willingness to pay, a business can maximize their profit. This is also known as price differentiation.

In General, Price Discrimination Exists Because