Question

Price discrimination refers to A. the practice of charging different prices to different buyers for goods of like grade and quality. B. a conspiracy among firms to set prices for a product or service. C. an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor. D. the practice of charging a very low price for a product with the intent of driving competitors out of business.

Answer 1

The answer is A.

Step-by-step explanation:

Price discrimination is a pricing policy where different customers are charged or priced at different prices for the same goods or services.

Price discrimination include can be based on age, occupation, location etc. For example, based on location: customers in estates might be charged higher than a customer that live im Ghetto for the same product.

We have three types of price discrimination:

First-degree price decrimination

Second-degree price decriminatiom

Third-degree price discrimination