Price discrimination is characterized by
A) Allowing crossmarket arbitrage
B) Selling a product or service to different customers at different prices
C) Utilizing the same levels of price elasticity of demand
D) Market conditions remaining similar across countries

Question

Quizplus · Accepted Answer

Price discrimination refers to the practice of selling a product or service to different customers at different prices. This strategy allows companies to maximize profits by charging the highest possible price for each unit sold, based on the willingness-to-pay of different groups of customers. This practice is typically used by firms that have market power and are able to segment the market and charge higher prices to customers who are less sensitive to price changes.

Price Discrimination Is Characterized by