Why do companies practice price discrimination?

(A) Price discrimination recognizes that groups of consumers are willing and able to pay different amounts for a good.
(B) Price discrimination allows companies to defend an illegal monopoly against free market competition.
(C) Price discrimination enables companies to charge all consumers the same price for a good or service.
(D) Price discrimination provides individual producers with an advantage in perfectly competitive markets.


Ans: (A) Price discrimination recognizes that groups of consumers are willing and able to pay different amounts for a good.

Economics

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In the presence of the crowding out effect, the purchase of Treasury bonds by the government will result in:

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Economics

"Anticompetitive practices" are actions by a powerful firm that:

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Economics