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) unfair.
C) incurring a loss on on-campus sales.
D) eliminating all competition.

Question

Quizplus · Accepted Answer

Price discrimination occurs when a firm sells the same product at different prices to different groups of consumers, in this case, based on their location.

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