Why do firms practice price discrimination?
A firm will increase profit if it is able to charge each customer the highest price they are willing and able to
pay. When a firm practices price discrimination, it segments its market in order to capture as much of the
difference between the price that each customer is willing to pay and the price that they actually pay.
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Using the data in the above table, the equilibrium quantity and equilibrium price for a cellular telephone is
A) 50 thousand and $100. B) 80 thousand and $80. C) 60 thousand and $50. D) 40 thousand and $20.
If Congress fails to pass a budget before the fiscal year starts, then federal agencies may continue to operate only if Congress has passed a:
A. balanced budget amendment. B. deficit reduction plan. C. conference resolution. D. continuing resolution.