Price discrimination is more common in service industries because
A)low-price buyers will find it virtually impossible to resell the products of such industries to high-price buyers.
B)the costs of providing such industries' products to different groups of buyers vary dramatically.
C)the price elasticity of demand is the same for all groups of buyers in these industries.
D)all firms in these industries have significant monopoly power over price.

Question

Quizplus · Accepted Answer

Price discrimination is more common in service industries because services are typically non-transferable and cannot be resold by consumers. This makes it difficult for low-price buyers to resell the services to high-price buyers, facilitating the practice of price discrimination by the providers.

Price Discrimination Is More Common in Service Industries Because