Question
upstudy study bank question image url

Price discrimination is the business practice of a. bundling related products to increase total sales. b. selling the same good at different prices to different customers. c. pricing above marginal cost. d. hiring marketing experts to increase consumers' brand loyalty.

Ask by Bowen Medina. in the United States
Mar 16,2025

Upstudy AI Solution

Tutor-Verified Answer

Answer

Price discrimination is when a company sells the same product at different prices to different customers.

Solution

Sign in to Unlock Answers for Free!

A Learning Platform Trusted by Millions of Real Students and Teachers.

star-icon Unlock

Answered by UpStudy AI and reviewed by a Professional Tutor

Bonus Knowledge

Price discrimination, specifically option b, allows companies to maximize profits by charging different prices to various groups of consumers based on their willingness to pay. For instance, students and seniors often enjoy discounted rates in cinemas and public transport, showing how targeting specific demographics can enhance accessibility while boosting revenues. A fun fact about price discrimination is that it's not just limited to physical products. Digital services, like streaming platforms, often have tiered pricing models, where plans may vary in price based on features offered. This strategy not only caters to diverse consumer preferences but also helps platforms capture a larger market share!

Related Questions

Latest Economics Questions

Try Premium now!
Try Premium and ask Thoth AI unlimited math questions now!
Maybe later Go Premium
Study can be a real struggle
Why not UpStudy it?
Select your plan below
Premium

You can enjoy

Start now
  • Step-by-step explanations
  • 24/7 expert live tutors
  • Unlimited number of questions
  • No interruptions
  • Full access to Answer and Solution
  • Full Access to PDF Chat, UpStudy Chat, Browsing Chat
Basic

Totally free but limited

  • Limited Solution
Welcome to UpStudy!
Please sign in to continue the Thoth AI Chat journey
Continue with Email
Or continue with
By clicking “Sign in”, you agree to our Terms of Use & Privacy Policy