Firms can only use one form of price discrimination. Indicate whether

Firms can only use one form of price discrimination.

Indicate whether the statement is true or false

ANSWER

False. Firms often combine different forms of price discrimination in order to maximize profits. For example, a ski resort often uses peak-load pricing because skiing is more popular during the high season when the snow is better. It may also charge locals less than tourists for lift tickets. And it may also use group price discrimination, discriminating based on age.