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"For a firm to maximize total profits through price discrimination, it should

a. ​charge a low price to high-value consumers and a high price to low-value consumers

b. ​charge a low price to high-value consumers and a low price to low-value consumers

c. ​charge a high price to high-value consumers and a high price to low-value consumers

d. ​charge a high price to high-value consumers and a low price to low-value consumers"

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Answer: d. ​charge a high price to high-value consumers and a low price to low-value consumers

Explanation: Price discrimination as a selling strategy involves charging customers different prices for the same product or service. It is often based on what the seller thinks they can get the customer to agree to and that customers can be asked to pay more or less based on certain demographics or on how they value the product or service on sale. Therefore, for a firm to maximize total profits through price discrimination, it should charge a high price to high-value consumers and a low price to low-value consumers.

User Philipp Ludwig
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