Which of the Following Statements Is True for Price Discrimination

question 51

Multiple Choice

Which of the following statements is true for price discrimination?

• A) The Robinson-Patman Act doesn't provide any defenses to price discrimination.
• B) It is permitted on discounts or gifts given in connection with the sale of a product.
• C) It refers to charging different prices to buyers of the same product at different times.
• D) It is a violation under section 2 of the Robinson-Patman Act.

---

Definitions:

Insurance Premiums

Payments made regularly to an insurance company in exchange for coverage, ensuring financial protection against specified risks.

Administrative Costs

Expenses that are not directly tied to specific business operations, including office expenses, salaries of non-production employees, and legal fees.

Earthquake Insurance

Insurance coverage specifically designed to protect a property owner against damages resulting from an earthquake.

Risk Aversion

A preference for certainty over uncertainty, with individuals choosing investments that offer a lower potential return with known risks over riskier ones.