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Question

Price discrimination will be profitable only if the elasticity of demand in different markets in which the total market has been divided is ____________.

A
uniform
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B
different
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C
less
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D
zero
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Solution

The correct option is A different
Price discrimination will be profitable only if the elasticity of demand in different markets in which the total market has been divided is different, since, that would give the firm an opportunity to charge differing prices and generate higher revenues.

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