Explain why a firm can earn more profit by price discrimination than from setting a uniform price

What will be an ideal response?

First, price discrimination allows a firm to charge a higher price to customers who are willing to pay more than the uniform price. The firm captures more of the consumer surplus. Second, a price-discriminating firm can sell to additional customers who were unwilling to pay the uniform price.

Economics

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For a perfectly competitive firm, the market price of a good is

A) a given which the firm cannot change. B) determined by the firm in order to maximize its profit. C) equal to the firm's marginal revenue. D) Answers A and B are correct. E) Answers A and C are correct.

Economics

Individuals tend to trade because

A) they place different values on their property. B) they expect to gain more than they give u

Economics