Price discrimination is:
A)the practice of charging a very low price for a product with the intent of driving competitors out of business.
B)the practice of charging different prices to different buyers for goods of like grade and quality.
C)an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor.
D)a conspiracy among firms to set prices for a product or service.

Question

Quizplus · Accepted Answer

Price discrimination refers to the practice of charging different prices to different buyers for goods of like grade and quality. This can be based on factors such as the buyer's willingness to pay, location, age, or any other factor that allows the seller to charge different prices. It is a common strategy used by businesses to maximize profits by extracting the greatest amount of revenue from each customer.

Price Discrimination Is