Which of the following statements best defines price discrimination and outlines its ethical implications and necessary conditions for effectiveness?

Price discrimination is when a company charges different prices to different customers for the same product or service. This practice can be based on various factors, such as the customer's willingness to pay, their location, or the time they make a purchase. For price discrimination to work effectively, there must be a way to separate customers into different groups and prevent them from reselling the product to others. Ethically, it raises questions about fairness, as some customers may feel they are being treated unfairly if they pay more than others for the same item. For example, a movie theater might charge lower prices for children and seniors, which can be seen as fair because it helps those groups afford entertainment.