In product-based price discrimination, price differentials for each good or service should be
A) equal to cost differentials.
B) greater than cost differentials.
C) less than cost differentials.
D) based on modified break-even analysis.

Question

Quizplus · Accepted Answer

Product-based price discrimination involves setting different prices for different products or services, even if the cost of providing them is the same. The goal is to maximize revenue by charging higher prices to customers who are willing to pay more. Therefore, price differentials should be greater than cost differentials.

In Product-Based Price Discrimination, Price Differentials for Each Good or Service