A common criticism of price discrimination is that it seems to:
A) cost some people more for similar goods or services.
B) cost some people more for the exact same good or service.
C) decrease a monopolist's profits.
D) make monopoly unviable.

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices to different customers for the same good or service. This means that some people may end up paying more for the exact same good or service as compared to others, which is why option B is the correct answer. Option A is incorrect because similar goods or services can differ in quality, features, or other attributes that affect their price. Option C is incorrect because price discrimination can actually increase a monopolist's profits by allowing them to extract higher prices from customers with a higher willingness to pay. Option D is incorrect because price discrimination is often practiced by monopolists as a strategy to increase their profitability.

A Common Criticism of Price Discrimination Is That It Seems