Asked by
Brady Carter
on Dec 12, 2024Verified
Price discrimination occurs when
A) firms maximize their profit by setting price equal to marginal cost.
B) a seller charges different prices to different consumers for the same product or service.
C) a seller charges the same price to consumers for a different product or service.
D) a seller charges different prices to consumers, discriminating by race or gender of the consumer.
Marginal Cost
The cost incurred by producing one additional unit of a product or service, which can vary depending on the level of production.
Same Product
Refers to goods or services that are identical in features, quality, and performance, providing no substantial difference to consumers.
Discriminating
The practice of unjustly distinguishing and treating individuals differently based on characteristics such as race, gender, or age.
- Comprehend the principle of price discrimination and its requisite conditions.
Verified Answer
SI
Learning Objectives
- Comprehend the principle of price discrimination and its requisite conditions.