Guzman Coleman
01/28/2023 · Junior High School

How can price discrimination improve efficiency compared to a situation in which a company must charge a single price? The price is pushed down to the level of average costs. The average cost ends up at the level of minimum average costs. The company's output is where marginal cost equals the last customer's marginal benefit. Everyone willing and able to pay for the product gets the same low price.

Upstudy ThothAI Solution

Tutor-Verified Answer

Quick Answer

Price discrimination improves efficiency by allowing companies to set prices based on consumers' willingness to pay, ensuring that the output level is where marginal cost equals the last customer's marginal benefit.

Step-by-step Solution

Answered by UpStudy AI and reviewed by a Professional Tutor
UpStudy ThothAI
Self-Developed and Ever-Improving
Thoth AI product is constantly being upgraded and optimized.
Covers All Major Subjects
Capable of handling homework in math, chemistry, biology, physics, and more.
Instant and Accurate
Provides immediate and precise solutions and guidance.
Try Now
Ask Tutors
Ask AI
10x
Fastest way to Get Answers & Solutions
By text

Enter your question here…

By image
Re-Upload
Uploaded Files
xxxx.png0%
Submit
📸 STUDY CAN BE A REAL STRUGGLE
Why Not UpStudy It?
Select your plan below
Premium

You can enjoy

  • Step-by-step explanations
  • 24/7 expert live tutors
  • Unlimited number of questions
  • No interruptions
  • Full access to answer and
    solution
  • Full Access to PDF Chat, UpStudy Chat, Browsing Chat
Basic
  • Limited Solutions