Multiple Choice
Which of the following is the main principle of price discrimination?
I. It is more profitable to set different prices in markets with different demand curves than charge the same price in all markets.
II. To maximize profits, firms should charge lower prices in markets with more elastic demands.
III. Arbitrage increases the profit opportunities of price discrimination.
A) I and III only
B) II only
C) I and II only
D) I, II, and III
Correct Answer:
Verified
Correct Answer:
Verified
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