Sellers that use group pricing can avoid resentment towards those who pay less by publicizing a pricing structure where certain groups _____ rather than where other groups _____.
A)receive a discount off the normal price; pay a premium above the normal price
B)earn a lower price; are forced to subsidize others.
C)are penalized with a higher than normal price; qualify for a discounted price.
D)pay less than their marginal benefit; pay more than their marginal benefit.

Question

Quizplus · Accepted Answer

By publicizing a pricing structure where certain groups receive a discount off the normal price, sellers can avoid resentment towards those who pay less. This way, everyone knows beforehand that certain groups are eligible for discounts, and it does not cause resentment among those who do not receive the discount. Furthermore, those who are not eligible for the discount are not forced to subsidize others as they are not paying a higher price than the normal rate.

Sellers That Use Group Pricing Can Avoid Resentment Towards Those