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Question

Which of these is not a cause of price discrimination?

A
Difference in quality.
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B
Tax differentiation.
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C
Depreciation.
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D
Power and fuel charges.
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Solution

The correct option is D Difference in quality.
Price discrimination means where the same product is sold at different prices in different market. The reasons for price discrimination can be different fuel charges, depreciation, tax differentiation as all these may vary in different markets. Charging different price because of difference in quality is not price discrimination as they are not the same products.

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