If consumers are identical, then A price discrimination is impossible B price discrimination can occur if each consumer has a downward-sloping demand curve for the product C perfect price discrimination is the only form of price discrimination that can increase a monopoly's profit D tie-in sales cannot increase a monopoly's profit

Question

Business

Amelia Brock

15 March, 01:38

If consumers are identical, then A price discrimination is impossible B price discrimination can occur if each consumer has a downward-sloping demand curve for the product C perfect price discrimination is the only form of price discrimination that can increase a monopoly's profit D tie-in sales cannot increase a monopoly's profit

+1

Answers (1)

Know the Answer?

Vivian Rangel · Answer 1

B. price discrimination can occur if each consumer has a downward-sloping demand curve for the product.

Explanation:

When a consumer has a downward-sloping demand curve for a particular product, price discrimination can occur. This is because different prices will be given to the different customers for a particular product to increase profits, which is usually carried out by the monopolist.

Price discrimination is a strategy of profiting off customers by offering the same or identical product or service at different prices to different customers.