Question

A firm practicing group price discrimination that has constant marginal cost will ________.

A. will act like a monopoly and treat all groups the same
B. sets p = MC
C. maximize total profit by maximizing profit for each group separately
D. will charge the same price to all groups

Answer 1

C. maximize total profit by maximizing profit for each group separately

Step-by-step explanation:

Price discrimination is when a seller sells the same quantity and quality of goods and services to different groups of consumers at different prices.

Price is usually set higher than marginal cost for a price discriminator.

I hope my answer helps you.