Which of the following best describes price discrimination?
A) charging different prices to different people and the prices are perceived as unfair and harmful
B) a firm selling the same good at more than one price to different groups of customers
C) when differences in cost are reflected by differences in price
D) commission of an act that is always illegal and not beneficial to buyers or sellers
E) a practice available only to competitive,price-taking firms

Question

Quizplus · Accepted Answer

Price discrimination is the practice of a firm selling the same good at more than one price to different groups of customers. This allows the firm to capture more of the consumer surplus and increase profits. It is not necessarily perceived as unfair or harmful, and can be a rational business strategy.

Which of the Following Best Describes Price Discrimination