Question

Price discrimination is defined as ___________.

• A. The practice of charging different prices to different consumers for the goods or services by slightly altering the packaging or features for the different groups
• B. Disregarding the profit motive by favoring one group of buyers over another by charging that group a lower price
• C. The practice of charging different prices to different consumers for the same goods or services
• D. The practice of selling a goods or services for the same to different groups of consumers group but slightly altering, quantity or features of the goods or services for each group

Answer 1

The correct option is C The practice of charging different prices to different consumers for the same goods or services

Price discrimination refers to the charging of different price by the monopolist for the same product. The differences maybe on the basis of brand wrapper etc. This policy of the monopolist is called price discrimination.

"Price discrimination refers strictly to the practice by a seller of charging different prices from different buyers for the same good" -J.S. Bian