Which of the following is an example of a company practicing price discrimination?
A)A restaurant charges different prices for fountain drinks based on their size.
B)Johann's bakery charges $2 for a cookie, and Bella's bakery charges $3 for an identical cookie.
C)The average price of a haircut is $20 in Dayton and $30 in Cincinnati.
D)Most passengers traveling on an airplane pay different prices for their tickets.

Question

Quizplus · Accepted Answer

Price discrimination occurs when a company sells the same product to different customers at different prices based on factors other than the cost of production. Airlines often charge different prices for seats on the same flight, which is a classic example of price discrimination, as they adjust prices based on demand, booking time, and other factors.

Which of the Following Is an Example of a Company