Why Is Price Discrimination Legal but Not Discrimination Based on Race

question 133

Multiple Choice

Why is price discrimination legal but not discrimination based on race or gender?

• A)Because price discrimination increases profits and therefore tax revenues for the government, but discrimination based on race or gender reduces tax revenues
• B)Because price discrimination reduces deadweight loss, but discrimination based on race or gender increases deadweight loss
• C)Because price discrimination involves charging people different prices based on their willingness to pay rather than on the basis of arbitrary characteristics
• D)Because price discrimination enables firms to increase output and employment, but race- or gender-based discrimination reduces employment

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Definitions:

Differentiation

The process of distinguishing or separating elements, often seen in businesses as the practice of making a product or service stand out from competitors through unique features.

Video Game Industry

A sector dedicated to the development, marketing, and monetization of video games, encompassing a wide range of roles including programming, design, art, and testing.

Exploitation

The act of using resources or individuals for one's own advantage or profit, often without fair compensation or regard for their well-being.

Mechanistic Structure

An organizational framework characterized by a high degree of formalization, complexity, and centralization in decision-making.