Which of the following is an example of price discrimination?
A) charging different prices to different groups on the basis of differing abilities to pay
B) consumer bargain hunting
C) charging different prices to different groups on the basis of production cost differences
D) consumers paying a price in excess of the producer's marginal cost

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices to different groups of customers based on their varying ability or willingness to pay. Option A is an example of this, as the seller is charging different prices to different groups of customers based on their ability to pay. Option B refers to consumers searching for the best deal, not the seller charging different prices based on customer characteristics. Option C involves charging different prices based on production cost differences, not customer characteristics. Option D involves consumers paying a price above marginal cost, but it doesn't necessarily involve charging different prices based on customer characteristics.

Which of the Following Is an Example of Price Discrimination