Assume a firm organizes all individuals by their willingness to pay (l

Assume a firm organizes all individuals by their willingness to pay (least to most). If the firm starts to perfectly price discriminate, what is likely to happen?

A) Consumers start to arbitrage amongst themselves.
B) The firm’s profits will be maximized.
C) The firm’s costs will be minimized.
D) The firm starts to arbitrage with consumers.

ANSWER

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