When the price of the same product varies based on locational attributes,it is an example of ________.

Question

Quizplus · Accepted Answer

This scenario describes third-degree price discrimination, where different prices are charged based on differences in the market or customer characteristics. In this case, location is the differentiating factor. Fair-returns pricing refers to a pricing strategy that aims to provide a fair rate of return on investment, while first-degree price discrimination refers to when a seller charges a different price for each individual unit sold, based on the buyer's willingness to pay. Second-degree price discrimination refers to a pricing strategy where buyers are offered different prices based on their quantity purchased or consumption behavior.

When the Price of the Same Product Varies Based on Locational