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Which of these statements is false? Group of answer choices Under direct price discrimination, profit minded firms should identify members of the high-value group, charge
Which of these statements is false? Group of answer choices Under direct price discrimination, profit minded firms should identify members of the high-value group, charge them a lower price, and prevent them from from reselling their lower-priced goods to the lower-value group. All else equal, price discrimination is most profitable when the gap between price and marginal costs is largest. One way to prevent arbitrage at a movie theater is for the ticket-taker to check for identification (i.e., drivers license, student or military ids.) Once you implement price discrimination, you create an icentive for members of the low-elasticity (inelastic) group to try to purchase at the lower prices offered to the high-elasticity (elastic) group
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