Table 16-1

Table 16-1 shows the price for the novel, Harry Potter and The Deathly Hallows at four online bookstores.
-Refer to Table 16-1.Which of the following can one conclude from the data above?
A) The data provides clear evidence of price discrimination in online bookstore market.
B) Amazon.com is able to charge a lower price for the item because it is more cost efficient than the other three companies.
C) The item offered for sale is similar but not identical; the quality of service and delivery time might vary from store to store, which justifies the price differences.
D) BarnesandNoble.com and Amazon.com have deliberately under-priced their product to force the other two companies out of business.

Question

Table 16-1
 
 Table 16-1 shows the price for the novel, Harry Potter and The Deathly Hallows at four online bookstores.
-Refer to Table 16-1.Which of the following can one conclude from the data above?
A) The data provides clear evidence of price discrimination in online bookstore market. 
B) Amazon.com is able to charge a lower price for the item because it is more cost efficient than the other three companies. 
C) The item offered for sale is similar but not identical; the quality of service and delivery time might vary from store to store, which justifies the price differences. 
D) BarnesandNoble.com and Amazon.com have deliberately under-priced their product to force the other two companies out of business.

Quizplus · Accepted Answer

The data shows that the item offered for sale is similar but not identical, implying that the quality of service and delivery time may vary from store to store, which justifies the price differences. There is no evidence of price discrimination or deliberate under-pricing to eliminate competition. Amazon's lower price could be due to its cost efficiency, but this cannot be conclusively inferred from the data.

Table 16-1 Table 16-1 Shows the Price for the Novel, Harry