The Ford Taurus and Ford Escort product lines (both produced by Ford) use many of the same parts in their cars, and the cars are, apart from design, virtually identical to one another, except for price. This suggests
A) a balanced oligopoly
B) cartel pricing
C) Ford's production inefficiency
D) game theory pricing
E) price discrimination

Question

Quizplus · Accepted Answer

This scenario suggests price discrimination because Ford is selling virtually identical products under different names and at different prices, targeting different segments of the market. This allows Ford to maximize profits by charging different prices to different consumers for products that are essentially the same, except for perceived differences (like brand or design).

The Ford Taurus and Ford Escort Product Lines (Both Produced