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Which of the following actions of a producer may cause price discrimination?

Which of the following actions of a producer may cause price discrimination?

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A. Charges different prices in different markets
B. Charges same price
C. Charges many prices
D. All of the above.

This question is part of Microeconomics Practice Test
Asked by Muhammadakram, Last updated: Feb 01, 2019

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3 Answers

b.Lisa

B.Lisa

Answered on Feb 26, 2018

Price discrimination is when a producer will charge a different price for a different market. One good, modern example is clothing. Men’s clothing is typically around the same price for the same size, no matter the brand (unless you want specially made items or specialty items). Women’s clothing, on the other hand, varies in size, color, covering, and price from brand to brand and season to season.

While smalls typically cost the least, their price can range anywhere from $3 to $25, depending on the brand, material, and the season.
For another example, turn to fast food. Prices vary depending on the part of the world you’re in. European fast food places, for example, typically price fatty options higher than healthy options, while in America, the opposite is true.

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John Adney

John Adney

Answered on Mar 06, 2017

Charges different prices in different markets
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John Smith

John Smith

Answered on Nov 07, 2016

Charges different prices in different markets
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