Asked by
Lorainne Cristel
on Oct 12, 2024Verified
Which statement is true?
A) Price discrimination eliminates all consumer surplus.
B) The main motivation for price discrimination is to decrease profits.
C) Airlines successfully separate business travelers from leisure travelers by requiring customers who get lower rates to stay over on Saturday night.
D) None of the choices are true.
Price Discrimination
A pricing approach where a single provider charges different prices for essentially the same products or services in different markets.
Consumer Surplus
The variance between what consumers are ready and capable of paying for a product or service versus what they actually end up paying.
Airlines
Entities that deliver passenger and freight transportation via air.
- Comprehend the conditions under which price discrimination occurs in monopolistic competition.
Verified Answer
TR
Learning Objectives
- Comprehend the conditions under which price discrimination occurs in monopolistic competition.