Which of the following is (are) true?
A) Every instance of firms charging different prices is price discrimination.
B) Different prices may reflect different costs.
C) Price differentials based on differences in production costs are examples of price discrimination.
D) B and C are true.

Question

Quizplus · Accepted Answer

Different prices can indeed reflect different costs associated with producing or delivering a product or service to different customers. This is a common business practice and does not necessarily indicate price discrimination. Price discrimination involves charging different prices to different customers for reasons not associated with differences in costs.

Which of the Following Is (Are) True