Asked by Logan Caskey on Sep 24, 2024
Verified
Price discrimination is
A) The practice of charging different prices to different individual buyers or customer groups
B) The practice of differentiating the product to make demand less elastic
C) The practice of deciding a single price to be charged to customers
D) Always illegal
Price Discrimination
The strategy of selling the same product to different customers at different prices, often based on their willingness or ability to pay.
Elastic Demand
A scenario in which a notable fluctuation in the demand for a product or service occurs due to a variation in its price.
- Acquire knowledge on the concept of price discrimination and its utilization in diverse business scenarios.
Verified Answer
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Alexis Daniels2 days ago
Final Answer :
A
Explanation :
Price discrimination refers to the practice of charging different prices to different individual buyers or customer groups based on factors such as their willingness to pay, location, age, or other characteristics. It is not always illegal, and can be a strategy used by businesses to increase profits. Option B refers to product differentiation, which is different from price discrimination. Option C is not accurate, as price discrimination involves charging different prices, not a single price. Option D is not true, as price discrimination is not always illegal, although there are certain types of price discrimination that may be deemed illegal under antitrust laws.
Learning Objectives
- Acquire knowledge on the concept of price discrimination and its utilization in diverse business scenarios.