In industries with high fixed costs, price discrimination:
A) is less common.
B) helps firms access more markets.
C) cannot help firms cover fixed costs.
D) is not practiced internationally.

Question

Quizplus · Accepted Answer

In industries with high fixed costs, firms often use price discrimination as a strategy to access more markets and increase their revenue streams. By charging different prices to different groups of consumers, firms can maximize their profits and cover their fixed costs more effectively. This is because price discrimination enables firms to capture more of the consumer surplus created by their products, as different consumers are willing to pay different prices for the same product.

In Industries with High Fixed Costs, Price Discrimination