If the marginal cost of serving different customers is the same but a company charges the customers different prices, the company is engaging in price discrimination. If a company charges different customers the same price even though the marginal cost of serving them is different, the company is also price discriminating. Classify the following examples of price discrimination on the basis of their legality. Example Legality Student/military/senior discounts. : Below-cost pricing in some geographic locations. : An airline charging a lower rate to all its early morning ight goers. : Unlimited subscription for cell phone data plans for customers to drive out competition V and raise rates subsequently. _ Which among the following statements explain why the above examples are legal I illegal? (Check all that apply.) E] A. Unlimited subscription for cell phone data plans for customers and below-cost pricing in some geographic locations are illegal examples of price discrimination. The former could drive out competitors and the latter engages in predatory pricing. E] B. Unlimited subscription for cell phone data plansfor customers and student/militarylsenior discounts are illegal examples of price discrimination. These discounts drive out competitors and lessen competition. E] C. An airline charging a lower rate to all its early morning ight goers and below-cost pricing in some geographic locations are legal examples of price discrimination. These practices do nothing to lessen competition. E] D. An airline charging a lower rate to all its early morning ight goers and student/military/senior discounts are legal examples of price discrimination. These discounts do nothing to lessen competition