Pharmaceuticals with High Fixed Costs Can Benefit with the Practice

Multiple Choice

Pharmaceuticals with high fixed costs can benefit with the practice of price discrimination because:

A) high fixed costs create incentive for pharmaceuticals to sell more.
B) charging different prices to different customers generates different levels of fixed costs.
C) profit from customers paying high prices allows pharmaceuticals to cover part of the fixed costs.
D) extra profit from customers paying low prices allows pharmaceuticals to cover part of the fixed costs.