Asked by Alexa Warson on Jul 17, 2024
Verified
It is illegal for a business to price discriminate when selling goods to other businesses unless
Both A & B are true
A) Price discounts are cost-justified
B) Discounts are offered to meet competitors' price
C) Either A or B is true
Price Discriminate
The practice of selling the same product to different consumers at different prices based on their willingness to pay.
Cost-Justified
A determination that an expense, investment, or action is deemed reasonable or worthwhile based on its cost.
- Identify conditions under which price discrimination is legal and ethical.
Verified Answer
NM
Natasa MoginJul 18, 2024
Final Answer :
C
Explanation :
The statement "It is illegal for a business to price discriminate when selling goods to other businesses unless" is false. It is not illegal for a business to price discriminate when selling goods to other businesses as long as the discrimination is not based on certain protected factors, such as race or gender. However, if a business chooses to offer price discounts to some customers and not others, they must have a valid reason for doing so. This reason could be either A or B (cost justification or meeting competitors' prices), so either option would satisfy the legal requirement. Therefore, the correct answer is C, as it indicates that either A or B is true.
Learning Objectives
- Identify conditions under which price discrimination is legal and ethical.