Which of the following quotes by a store manager describes price discrimination in action?
A)"Since bulk goods are cheaper to package, I can offer a lower price."
B)"I can get a 4-litre jug of milk from the supplier for less than four 1-litre cartons, so I can sell it for less per litre."
C)"We offer our employees a 10 percent price discount."
D)"I offer discounts if you buy 12 apple juices in one box, although it costs me the same as if I split it up and sell them separately."
E)"We set price equal to average variable cost."

Question

Quizplus · Accepted Answer

Option D describes price discrimination as the store manager is offering discounts only if the customer buys a specific quantity of apple juice. This is an example of quantity discrimination, a form of price discrimination.

Which of the Following Quotes by a Store Manager Describes