Which of the following is not a way by which price-discriminating firms can segment a market?
A) on the basis of time of purchase, for example long-distance calling
B) by requiring an advance purchase, for example air tickets
C) on basis of the buyer's location, for example requiring out-of-state students to pay higher tuition
D) on the basis of the supplier's marginal cost of production, for example requiring customers to pay a premium for customising options

Question

Quizplus · Accepted Answer

Price discrimination based on supplier's marginal cost of production is not a common way of market segmentation. The other three options (A, B, and C) are commonly used ways of segmenting a market to price discriminate.

Which of the Following Is Not a Way by Which