If tourists are charged a much higher price than the natives of a country for exactly the same item,what kind of pricing is involved?
A)Monopoly pricing.
B)Price discrimination.
C)Competitive pricing.
D)MC = MR pricing.

Question

Quizplus · Accepted Answer

This situation involves price discrimination, where the seller is charging different prices for the same item to different groups of customers, based on their willingness to pay or other factors such as residency. This can be a common practice in tourist destinations where pricing strategies are designed to extract more revenue from tourists, who may be perceived as having a higher willingness to pay, compared to locals. Monopoly pricing refers to a situation where a single seller has control over the market, competitive pricing is based on market competition, and MC = MR pricing refers to the profit-maximizing pricing rule in microeconomic theory. None of these concepts fully explain the scenario described in the question.

If Tourists Are Charged a Much Higher Price Than the Natives