Price discrimination is permitted under which of the following conditions?
A)when a manufacturer and reseller have agreed upon a specified retail price for a product
B)when a manufacturer sells to retailers in different markets
C)if a seller can prove its costs per unit are different when selling to different retailers
D)if a seller advertises prices that are not actually available to consumers
E)if a seller has not communicated with competitors before announcing prices

Question

Quizplus · Accepted Answer

Price discrimination is permitted if a seller can prove that its costs per unit are different when selling to different retailers. This is known as cost-based price discrimination and is considered legal. However, price discrimination based on other factors such as race, gender or nationality is illegal.

Price Discrimination Is Permitted Under Which of the Following Conditions