Price Discrimination Is Legal Under Which of the Following Conditions

question 115

Multiple Choice

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

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Definitions:

Limbic System

A complex system of nerves and networks in the brain, involving several areas near the edge of the cortex concerned with instinct and mood.

Autonomic Nervous System

The part of the peripheral nervous system that controls involuntary bodily functions, including heart rate, digestion, respiratory rate, pupillary response, urination, and sexual arousal.

Somatic Nervous System

A part of the peripheral nervous system associated with voluntary control of body movements via skeletal muscles.

Midbrain

A central part of the brainstem involved in vision, hearing, motor control, sleep/wake, arousal, and temperature regulation.