Asked by Jenny Mclin on Jun 29, 2024
Verified
Price discrimination refers to
A) selling a given product for different prices at two different points in time.
B) any price above that which is equal to a minimum average total cost.
C) the selling of a given product to different customers at different prices that do not reflect cost differences.
D) the difference between the prices a purely competitive seller and a purely monopolistic seller would charge.
Price Discrimination
A pricing strategy where a seller charges different prices for the same product or service to different customers, based on factors like willingness to pay, market conditions, or customer attributes.
- Determine the conditions required for effective price discrimination and its impact on economic welfare and firm profits.
Verified Answer
ZK
Zybrea KnightJul 06, 2024
Final Answer :
C
Explanation :
Price discrimination involves selling the same product to different customers at different prices, where these price differences are not based on the cost of providing the product to different customers.
Learning Objectives
- Determine the conditions required for effective price discrimination and its impact on economic welfare and firm profits.