Asked by Angela Trevino on May 16, 2024
Verified
The economic incentive for price discrimination is based upon
A) prejudices of business managers.
B) differences among sellers' costs.
C) a desire to evade antitrust legislation.
D) differences among buyers' elasticities of demand.
Price Discrimination
A pricing approach in which the same provider sells the same or nearly the same products or services for different prices in distinct markets or to various customers.
Elasticities of Demand
A measure of how much the quantity demanded of a good responds to a change in price, indicating the sensitivity of consumers to price changes.
Economic Incentive
A financial or material benefit that motivates individuals or businesses to act in certain ways or pursue particular courses of action.
- Recognize the distinctions in demand elasticity and their role in influencing strategies for pricing discrimination.
Verified Answer
Learning Objectives
- Recognize the distinctions in demand elasticity and their role in influencing strategies for pricing discrimination.
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