Price discrimination is legal when a ________.
A) manufacturer and reseller have agreed upon a specified retail price for a product
B) manufacturer sells to retailers in different markets
C) seller can prove its costs are different when selling to different retailers
D) seller advertises prices that are not actually available to consumers
E) seller has not communicated with competitors before announcing prices

Question

Quizplus · Accepted Answer

Price discrimination is legal when a seller can prove its costs are different when selling to different retailers. This is known as "cost-based" price discrimination, where the seller sets different prices for different customers based on variations in the cost of production, transportation, or selling to different markets. However, price discrimination based on other factors such as race, gender, or religion is illegal.

Price Discrimination Is Legal When a ________