Price discrimination:
A) by firms selling to final consumers is illegal, but it is usually legal in selling to intermediaries.
B) is not covered by Federal laws, but in some states it is illegal.
C) is always illegal.
D) may be legal if the firm can prove that different prices were set based on different costs.
E) None of the above is true.

Question

Quizplus · Accepted Answer

Price discrimination is legal if the firm can prove that different prices were set based on different costs. For example, a company can charge different prices for the same product if they incur different costs in producing, distributing or selling the product. Other forms of price discrimination may be illegal, such as those based on discriminatory intent towards a certain group or market.

Price Discrimination