Which of the following is not a way by which price-discriminating firms can segment a market?
A)On the basis of time of purchase, for example long-distance calling
B)By requiring an advance purchase, for example air tickets
C)On basis of the buyer's location, for example requiring out-of-state students to pay higher tuition
D)On the basis of the supplier's marginal cost of production, for example requiring customers to pay a premium for customising options

Question

Quizplus · Accepted Answer

Price discrimination based on the supplier's marginal cost of production is not a common method of market segmentation. Price discrimination is usually based on the buyer's willingness to pay or the characteristics of the product or service being sold. The other options listed are all common methods of market segmentation used by price-discriminating firms.

Which of the Following Is Not a Way by Which