Price discrimination:A. by firms selling to final consumers is illegal, but it is usually legal in selling to intermediaries.

B. is not covered by Federal laws, but in some states it is illegal.

C. is always illegal.

D. may be legal if the firm can prove that different prices were set based on different costs.

E. None of the above is true

Question

Business

Sebastian Glover

12 October, 12:53

Price discrimination:A. by firms selling to final consumers is illegal, but it is usually legal in selling to intermediaries.

B. is not covered by Federal laws, but in some states it is illegal.

C. is always illegal.

D. may be legal if the firm can prove that different prices were set based on different costs.

E. None of the above is true

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Answers (1)

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Aden Fitzgerald · Answer 1

D. may be legal if the firm can prove that different prices were set based on different costs.

Explanation:

The competition and consumer act seeks to prevent unfair price discrimination by ensuring that sellers offer the same price terms to customers at a given level of trade. However, price discrimination is allowed if the seller can prove that its costs are different when selling to different customers.