Using a strategy of price discrimination, a firm can increase its profits by offering lower prices to its customers who are willing to pay above the firm's:
A) average costs.
B) marginal costs.
C) fixed costs.
D) total costs.

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices to different customers based on their willingness to pay. By offering prices above marginal costs, the firm ensures that each sale contributes to covering fixed costs and increasing profits.

Using a Strategy of Price Discrimination, a Firm Can Increase