Price discrimination:
A)has been illegal in the United States since 1963.
B)is the practice of charging consumers different prices for the same good or service.
C)is customarily observed when the sales representative in a store charges each customer what he/she thinks is the highest price the customer will bear.
D)is most common in perfectly competitive industries.

Question

Quizplus · Accepted Answer

Price discrimination is the practice of charging different prices for the same good or service. It is not illegal in the United States, although there are certain types of price discrimination that are illegal, such as discrimination based on race or gender. Price discrimination is also not customarily observed by charging each customer what the sales representative thinks they will pay, but rather involves a more carefully planned strategy. Finally, price discrimination is actually less common in perfectly competitive industries, where firms have little control over price. Price discrimination is the practice of charging different prices for the same good or service. This can be done based on factors such as the customer's willingness to pay, location, time of purchase, and quantity bought. While price discrimination is not illegal in the United States, it is illegal to discriminate based on factors such as race, gender, or religion. Price discrimination is typically observed in markets with some degree of market power, such as monopolies or oligopolies.

Price Discrimination