A subtle form of price discrimination is for firms to offer:
A) the same version of a product for the purpose of separating customers into different markets.
B) the same version of a product for the purpose of separating customers into the same market.
C) different versions of a product for the purpose of separating customers into different markets.
D) different versions of a product for the purpose of separating customers into the same market.

Question

Quizplus · Accepted Answer

Different versions of a product can be offered at different prices to different markets, based on their willingness to pay. This is a form of price discrimination where the firm is separating customers into different markets based on their preferences and ability to pay. By offering different versions of the product, the firm can capture more value from customers who are willing to pay a higher price for a more premium version, while still making sales to customers who only want the basic version at a lower price.

A Subtle Form of Price Discrimination Is for Firms to Offer