Question

In New York City's Chinatown, tourists flock to shops to buy souvenirs from local retailers. Each store sells similar items, but each salesperson tries to determine a customer's reservation price before reaching a deal. In this scenario, the salesperson is attempting: Choose one: O A. to minimize consumer loss. O B. perfect price discrimination. O C. to maximize buyer behavior. O D. to minimize producer loss. O E. price-taking discrimination.

Answer 1

Ans.- Perfect price discrimination

Under perfect price discrimination, a firm charges the maximum price that a buyer is willing to pay i.e. reservation price of buyer is charged . Since in this case, retailers are trying to do the same ,so they are attempting perfect price discrimination.