When Dominant Pizza is willing to sell a pizza to a student who lives on- campus at a lower price than it sells the identical pizza to a student who lives a block away from the campus, the pizza firm is _______.
A) practicing price discrimination
B) eliminating all competition
C) unfair
D) incurring a loss on on- campus sales

Question

Quizplus · Accepted Answer

This is an example of price discrimination, where a firm sells the same product to different consumers at different prices based on certain criteria, in this case, the location of the consumer.

When Dominant Pizza Is Willing to Sell a Pizza to a Student