Lucas sells athletic clothing for a major clothing manufacturer.His buddy owns a local retail store, so Lucas agrees to give him a further 10% discount so that he can compete better in his city.Which of the following terms best describes Lucas' action?

Question

Quizplus · Accepted Answer

Lucas is giving his buddy a further discount, different from the general wholesale price, in order to compete better in the local market. This is an example of price discrimination, which is the act of charging different prices to different customers for the same product or service.

Lucas Sells Athletic Clothing for a Major Clothing Manufacturer