13th Edition
Roger A. Arnold
ISBN: 9781337617406




13th Edition
Roger A. Arnold
ISBN: 9781337617406
Textbook Problem

Fast-food stores often charge higher prices for their products in high-crime areas than they charge in low-crime areas. Is this an act of price discrimination? Why or why not?

To determine

The price discrimination between low-crime area and high-crime area.


This type of price discrimination is an attempt to reduce the risk due to the existence of high  crime. Because in a high-crime area, the possibility to occur loss is also higher, then it is even more expensive to hire employees...

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