Consider the following statements about pricing and the law:
I. American antitrust laws restrict certain types of pricing behavior.
II. The term "price discrimination" involves charging different prices to different customers for the same goods and services.
III. Charging different prices to different customers for the same goods is permissible if price differences are based on cost differences of producing and/or selling the good.
Which of the above statements is (are) true?
A) I only.
B) II only.
C) I and II.
D) II and III.
E) I, II, and III.

Question

Quizplus · Accepted Answer

All three statements are true. American antitrust laws do restrict certain types of pricing behavior to prevent unfair competition and monopolies. Price discrimination does involve charging different prices to different customers for the same goods and services, and it can be permissible under certain conditions, such as when price differences are based on cost differences of producing and/or selling the goods.

Consider the Following Statements About Pricing and the Law