All of the Following Are True Regarding Price Discrimination EXCEPT

question 117

Multiple Choice

All of the following are true regarding price discrimination EXCEPT that:

• A)the laws apply to service providers, but not manufacturers
• B)it is permissible if price differences can be explained
• C)it is illegal only if the intent is to destroy competition
• D)it is most likely to occur when the cost base is the full cost of the product

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Definitions:

Motor Vehicle Licence

A document granting the legal permission to drive a motor vehicle on public roads.

Operating Lease

A leasing agreement allowing a lessee to use an asset, but the lease does not transfer ownership of the asset to the lessee.

Risk Of Obsolescence

The risk that a product or service will become outdated or no longer useful due to advancements in technology or changes in market preferences.

Income Tax

A tax imposed by the government on the income generated by individuals or entities, which varies according to the amount of income.