Pizza producers charge one price for a single pizza and almost give away a second one. This is an example of
A) price discrimination.
B) monopoly.
C) behaviour that is not profit-maximising.
D) rent seeking.
E) a barrier to entry.

Question

Quizplus · Accepted Answer

This is an example of price discrimination as the pizza producers are charging different prices for the same product (one at regular price and the second at a discounted price) based on the number of pizzas purchased.

Pizza Producers Charge One Price for a Single Pizza and Almost