Which of the following is not a way by which price discriminating firms can segment a market?
A)on the basis of time of purchase, for example matinee theatre tickets
B)by requiring an advance purchase, for example air travel tickets
C)on basis of the buyer's location, for example requiring international students to pay higher tuition
D)on the basis of the supplier's marginal cost of production, for example requiring customers to pay a premium for customizing options

Question

Quizplus · Accepted Answer

Price discrimination based on the supplier's marginal cost of production is not a common market segmentation technique. Rather, firms typically segment a market based on factors such as the buyer's willingness to pay, time of purchase, location, and other demographic factors. Customizing options may be one factor that influences willingness to pay, but it is not directly tied to the supplier's marginal cost of production.

Which of the Following Is Not a Way by Which