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Lina20 [59]
3 years ago
9

For direct price discrimination to work a. ​The firm need not be able to identify the members of the low-value group b. ​The fir

m be able to charge the low-value customers a lower price than the higher-value customers c. ​The firm need not worry about any arbitrage since all its customers are charged the same price d. ​It needs to be too complicated for the customers to understand
Business
1 answer:
MakcuM [25]3 years ago
6 0

Answer:

The correct answer is letter "B": ​The firm be able to charge the low-value customers a lower price than the higher-value customers.

Explanation:

Price discrimination is the practice by which producers charge different prices to different consumers based on factors such as<em> age, income or location</em> to mention a few. This differentiation in prices is always justified by producers with one of those factors otherwise the approach would be considered illegal.

Direct price discrimination<em> is carried out when the firm charges lower prices to an unfavored sector of the market keeping the regular price in sectors where income is higher.</em>

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