Consider the Following Actions Undertaken by a Firm

question 129

Multiple Choice

Consider the following actions undertaken by a firm:
A.charging a higher price for products of higher quality
B.charging different prices to different consumers for the same product when the variation cannot be explained by cost differences
C.charging different prices for products of different qualities
D.charging a lower price to match a competitor's price
Which of the above will be considered price discrimination?

• A)a, b, c, and d
• B)a, b, and d only
• C)b and d only
• D)b only

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Definitions:

Cash Transactions

Financial exchanges or deals where the payment is made in cash at the time of the transaction.