Asked by Audriana Bridley on May 01, 2024
Verified
Price discrimination occurs whenever a firm sells a good for two different prices.
Price Discrimination
A pricing strategy where a company charges different prices for the same product or service to different customers, based on the willingness to pay.
Different Prices
The phenomenon where goods or services are sold at varying prices due to factors such as location, demand, or quality.
- Comprehend the principle of price discrimination and its application in monopolistic markets.
Verified Answer
ZK
Zybrea KnightMay 07, 2024
Final Answer :
False
Explanation :
Price discrimination involves a firm selling the same good or service at different prices to different groups of consumers, based on their willingness to pay, not merely selling goods at different prices for other reasons such as cost differences, product versions, or locations.
Learning Objectives
- Comprehend the principle of price discrimination and its application in monopolistic markets.
Related questions
The Practice of Price Discrimination Is Associated with Pure Monopoly ...
A Price Discriminating Pure Monopolist Will Attempt to Charge Each ...
Electric Companies Generally Practice Price Discrimination and Charge Higher Prices ...
When a Monopolist Practices Price Discrimination as Opposed to Setting ...
An Oligopoly That Engages in Price Discrimination Will Charge Higher ...