Why do firms want to price discriminate? Question 5 options: so they can implici

Question

Why do firms want to price discriminate?

Question 5 options:

so they can implicitly choose who to sell goods to under the guise of "price discrimination" when they're really discriminating for mean reasons, like race, ethnicity, etc...

so they can minimize the cost of production

to maximize profit

to encourage corporate responsibility

so they can implicitly choose who to sell goods to under the guise of "price discrimination" when they're really discriminating for mean reasons, like race, ethnicity, etc...

so they can minimize the cost of production

to maximize profit

to encourage corporate responsibility

Explanation / Answer

Firms use price discrimination by charging different prices to different customers for same good.

They use this to increase the quantity sold and therefore they want to increase total revenue and profit.

So their objective is to maximize profit.

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