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 long-distance calling
B)by requiring an advance purchase, for example airline tickets
C)on basis of the buyer's location, for example requiring out-of-state 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 supplier's marginal cost of production is not a commonly used method for market segmentation. Other methods such as time of purchase, advance purchase, and buyer location are more commonly used by firms to segment the market.

Which of the Following Is Not a Way by Which