A firm can be identified as practicing price discrimination when
A) consumers engage in comparison shopping to find the lowest advertised price.
B) firms behave as price takers,whereas consumers react with price-making behavior.
C) buyers in a perfectly competitive market are able to influence the prices that firms set.
D) producers pass on differences in costs to those price-conscious consumers willing to buy in bulk.
E) producers set different prices for distinct groups of consumers,despite selling identical products to each group.

Question

Quizplus · Accepted Answer

Price discrimination occurs when producers set different prices for groups of consumers, despite selling identical products to each group. This strategy allows firms to capture more consumer surplus and increase profits.

A Firm Can Be Identified as Practicing Price Discrimination When