Price discrimination is the practice of
A)charging different prices for the same good when the price differences are not due to differences in cost.
B)charging different prices for the same good when the price differences arise because of differences in cost.
C)charging different prices for different qualities of a product.
D)charging higher prices for brand-named goods and lower prices for generic versions of the goods.

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices for the same good, and the key characteristic is that the price differences are not due to differences in cost. This means that the seller is able to charge different prices to different customers based on various factors such as willingness to pay, location, or buying habits.

Price Discrimination Is the Practice of