Which statement is true?

Question

Quizplus · Accepted Answer

Price discrimination is the practice of charging different prices to different groups of buyers for the same good or service. In order to engage in price discrimination, a firm needs to be able to distinguish between different groups of buyers, such as based on their willingness to pay or their location. This is typically easier for firms with more market power, such as monopolies, but it is not a necessary condition for price discrimination to occur. Choice A is incorrect because firms in competitive markets can also engage in price discrimination. Choice B is incorrect because price discrimination does not necessarily violate any constitutional rights. Choice C is incorrect because price discrimination can occur even when the seller charges the same price for different goods or services to different groups of buyers.

Which Statement Is True