Price Discrimination

question 92

Multiple Choice

Price discrimination

• A)is the practice of charging different prices to different customers based on a seller's personal preferences and prejudices.
• B)is the practice of charging different prices to different customers based on the different costs of supplying the product to different customers.
• C)is the practice of charging different prices to different customers when the price differences cannot be attributed to variations in cost.
• D)is the practice of giving preferential treatment to certain groups of customers based on their long-standing relationship to the producer.

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Definitions:

Behavioral Interpretation

The process of understanding actions and reactions through psychological principles.

Ultimate Attribution Error

The tendency to believe that bad actions by outgroup members occur because of their internal dispositions and good actions by them occur because of the situation, while believing the reverse for ingroup members.

Ingroup Bias

The tendency to favor members of one's own group over those in other groups, often leading to preferential treatment and positive evaluations of ingroup members.

Outgroup Derogation

A phenomenon in which an out-group is perceived as being different from and inferior to the in-group.