Which of the Following Statements About Price Discrimination Is True

question 58

Multiple Choice

Which of the following statements about price discrimination is true?

• A) It exists whenever consumers in a country are charged different prices for the same product.
• B) A necessary condition for profitable price discrimination is different price elasticities of demand in different countries.
• C) It is the use of price as a competitive weapon to drive weaker competitors out of a national market.
• D) It makes economic sense to charge the same prices across countries.

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Definitions:

Criticism

The expression of disapproval or the identification of faults in someone or something, often based on perceived mistakes or weaknesses.

Ridicule

To mock, taunt, or make fun of someone or something in a demeaning way.

Neglect

The failure to provide for or attend to someone's needs, care, or wellbeing.

Low-income

A term describing individuals or families that earn significantly less than the average income, often leading to limited access to resources and opportunities.