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

Question

Quizplus · Accepted Answer

Price discrimination is legal if the seller can prove that their costs are legitimately different when selling to different retailers. This is known as cost justification and is a valid reason for price discrimination.

Price Discrimination Is Legal Under Which of the Following Conditions