Price Discrimination Occurs When

question 1

Multiple Choice

Price discrimination occurs when

• A) firms maximize their profit by setting price equal to marginal cost.
• B) a seller charges different prices to different consumers for the same product or service.
• C) a seller charges the same price to consumers for a different product or service.
• D) a seller charges different prices to consumers, discriminating by race or gender of the consumer.

---

Definitions:

Agriculture

The practice of cultivating the soil, growing crops, and raising livestock for the purpose of food production or other agricultural products.

Urban Areas

Densely populated regions that are characterized by significant built environment and infrastructure, including cities and towns.

Developing World

Nations with a lower living standard, undeveloped industrial base, and low Human Development Index relative to other countries.

Developed World

Countries that have a high level of economic development, characterized by significant industrialization, infrastructure, and a high standard of living.