Question

Price discrimination: Multiple Choice tends to decrease the profits of the competitive firm. is more successful if one consumer can resell the product to another. can benefit consumers with a lower willingness to pay as compared to other consumers in the market. can be a successful strategy for any firm in a competitive market.

Answer 1

can benefit consumers with a lower willingness to pay as compared to other consumers in the market.

Step-by-step explanation:

Price discrimination occurs when a supplier sells a product to different customers at different prices.

The criteria for discrimination can be as a result of income, social class, demographics and so on.

Price discrimination is not a good strategy in a competitive market as consumers will move to other suppliers when the price is not conducive.

However a consumer who is less willing to buy the product can benefit from this because the supplier is open to lowering the price depending on certain criteria