Which Is the Best Example of Price Discrimination

question 174

Multiple Choice

Which is the best example of price discrimination?

• A) an airline company charging lower fares per pound for air freight than for passengers
• B) a telephone company charging lower rates to weekend users than weekday users
• C) a supermarket charging lower prices in its city stores than its out-of-the-way rural store
• D) a private doctor charging higher fees to patients receiving special services than patients receiving regular services

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Definitions:

Differ

To be unlike or distinct in nature, form, or characteristics.

Advantages

Benefits or favorable points that give someone or something a more competitive position or higher likelihood of success.

Franchisee

An individual or company that holds the rights to operate a business or sell goods or services under the trademark and systems of a franchise brand.

Exclusive Territory

A designated area or market where a franchisee is granted exclusive rights to operate, preventing competition within the franchise system.