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Commerce · Q382

Economics

Graduate and Post Graduate · Commerce · question 382

Q382

Price discrimination often favours public interest because it

A.
Allows production of some products that would have been otherwise difficult in the economy due to the fear of making losses
Answer
B.
Opens consumption possibilities to the consumer that would otherwise not be inaccessible if a single price prevailed in the market
C.
Allows firms to make supernormal profits, which in turn, allows them to sustain price wars when breaking into new markets
D.
All of the above

Answer: Option A

Solution

Answer: Option A
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