Final answer:
A business that price discriminates will generally charge some customers more than marginal cost, and it will generally charge other customers less than marginal cost.
option a is the correct
Step-by-step explanation:
A
business
that
price discriminates
will
generally charge some customers more than marginal cost, and it will generally charge other customers less than marginal cost.
For example, a business that wants to maximize its profits might practice price discrimination by offering discounts or lower prices to certain groups of customers while charging higher prices to others. This allows the business to extract more revenue from customers who are willing to pay higher prices while still attracting customers who are more price-sensitive.
However, it is important to note that price discrimination is not always based on marginal cost alone. Other factors such as customer demographics, willingness to pay, and market conditions can also influence pricing decisions.
Therefore, the statement is true.A discriminatory business that is underpaying its workers may find those workers leaving for jobs with another employer who offers better pay. This market pressure could cause the discriminatory business to behave better.