Price discrimination exists:
A)only in perfectly competitive markets.
B)because sellers try to exploit customers' different willingness to pay.
C)in all industries,regardless of market structure.
D)only when monopolies are present.

Question

Quizplus · Accepted Answer

Price discrimination occurs when sellers charge different prices to different customers for the same or similar products. This is done because sellers know that some customers are willing to pay more for a product. Price discrimination can occur in any industry, regardless of market structure. However, in a perfectly competitive market, all firms sell the same product at the same price, so price discrimination is not possible. Monopolies have the most power to engage in price discrimination, but it is not limited to situations where monopolies are present. Therefore, the best answer is B.

Price Discrimination Exists