Under which circumstance is it legal to charge a lower price to a particular buyer?
A)if the items are the same
B)if the price discrimination lessens competition
C)if the costs of serving that particular buyer are lower
D)All of these are correct.

Question

Quizplus · Accepted Answer

It is legal to charge a lower price to a particular buyer only if the costs of serving that buyer are lower. This is known as price discrimination based on cost differences, which is allowed because the costs of producing and delivering goods and services can vary between customers. Price discrimination is illegal if it lessens competition or is based on certain personal characteristics such as race, gender, or religion. If the items are the same, charging a lower price to a particular buyer may be considered unfair and illegal.

Under Which Circumstance Is It Legal to Charge a Lower