Ordinary price discrimination draws its name from the fact that:
A)it is not the firms' first choice.
B)it is inefficient.
C)information asymmetries are usually not so severe to prevent this type of price discrimination.
D)all firms engage in this sort of price discrimination.

Question

Quizplus · Accepted Answer

Ordinary price discrimination is named as such because it occurs under conditions where information asymmetries (differences in what buyers and sellers know about each other) are not so severe as to prevent firms from varying their prices based on different customer segments or purchase conditions. This allows firms to charge different prices to different customers based on their willingness to pay, without significant barriers caused by information gaps.

Ordinary Price Discrimination Draws Its Name from the Fact That