In January of 2014, Rogers Cable Was Offering New Customers

In January of 2014, Rogers cable was offering new customers cable TV, internet access, and a PVR, for $19.95 a month.Renting just a PVR from Roger's would cost existing customers $25.07 a month.Is Rogers engaging in price discrimination, and if so, why?

A) No, it is not; it is merely differentiating its product by offering different levels of service.
B) No, it is not. Its decision to give priority to new customers is a business strategy independent of pricing.
C) Yes it is; Rogers is charging different prices for the same service. It does this to increase its profit.
D) Yes it is; Rogers wants to discourage those existing customers from watching too much TV because they lower the firm's profits.

Correct Answer:

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