Price discrimination is legal under which of the following conditions?
A)when a manufacturer and reseller have agreed upon a specified retail price for a product
B)when a manufacturer sells to retailers in different markets
C)if a seller can prove its costs per unit are different when selling to different retailers
D)if a seller advertises prices that are not actually available to consumers
E)if a seller has not communicated with competitors before announcing prices

Question

Quizplus · Accepted Answer

Price discrimination is legal when a seller can prove that their costs per unit are different when selling to different retailers. This is known as cost-based discrimination, and it is generally considered to be fair and reasonable.

Price Discrimination Is Legal Under Which of the Following Conditions