Why do firms want to price discriminate? multiple choice a) so they can implicit

Question

Why do firms want to price discriminate?

multiple choice

a) so they can implicitly choose who to sell goods to under the guise of "price discrimination" when they're really discriminating for mean reasons, like race, ethnicity, etc...

b) so they can minimize the cost of production

c) to maximize profit

d) to encourage corporate responsibility

a) so they can implicitly choose who to sell goods to under the guise of "price discrimination" when they're really discriminating for mean reasons, like race, ethnicity, etc...

b) so they can minimize the cost of production

c) to maximize profit

d) to encourage corporate responsibility

Explanation / Answer

Solution: C to maximize profit

Explanation: Firms want to price discriminate to increase profits. It is profitable to do so as it allows them to capture consumer surplus

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