Price discrimination is when a firm charges
A) the same price to all consumers.
B) different prices for different goods to different consumers.
C) different prices for the same goods to different consumers.
D) None of the above is correct.

Question

Quizplus · Accepted Answer

Price discrimination occurs when a firm charges different prices for the same product or service to different consumers. This can be based on various factors such as geographic location, age, income level, or even time of purchase. By doing so, the firm can extract more surplus from consumers who are willing to pay higher prices, ultimately increasing profits.

Price Discrimination Is When a Firm Charges