Choose the correct answer Some Internet retailers track whet

Choose the correct answer.

Some Internet retailers track whether their customers have recently visited popular price-comparison sites. To maximize profit, Internet retailers _____________

offer the product to customers who visit price-comparison sites at a higher price.

offer the product to customers who visit price-comparison sites at a lower price.

offer the same price to all customers.

start offering the product in brick-and-mortar shops to avoid price comparisons.

Solution

Price discrimination is the logic behind this.

If consumer searches for more information about the internet plans he becomes more information efficient and this reduces markup for producers while dealing with such consumers.

Hence provider should provide less price to such consumers.

Option 2 is correct.