Which of these statements is false? Which of these statements is false? All else equal, price discrimination is most profitable when the gap between price and marginal costs is largest. 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. 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. 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.)