When a firm sells a given product at more than one price and the price difference is NOT caused by differences in cost then there is
A) price discrimination.
B) price differentiation.
C) price demarcation.
D) price delineation.

Question

Quizplus · Accepted Answer

Price discrimination occurs when a firm charges different prices for the same product or service to different buyers, based on differences in their willingness to pay. If the price difference is not caused by differences in cost, then it is likely that the firm is engaging in price discrimination. Price differentiation, demarcation, and delineation are not commonly used terms in economics and do not accurately describe this situation.

When a Firm Sells a Given Product at More Than