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.