Which of the following practices can lead to unfair market competition?

Price discrimination is a practice that can lead to unfair market competition because it involves charging different prices to different customers for the same product or service based on their willingness to pay, rather than on differences in cost. This can create an uneven playing field where some customers may receive more favorable prices than others, potentially harming competitors who may not have the same pricing flexibility.

For instance, if a company knows that certain customers are willing to pay more, it might charge them a higher price, while offering discounts to other customers. This can distort competition, as it may allow the company to capture more market share or drive competitors out of the market, particularly if those competitors do not engage in similar practices.

In contrast, practices like price indexing, market segmentation, and quality improvement typically do not result in the same type of competitive disadvantage. Price indexing is more about adjusting prices based on broader economic factors and is generally seen as a fair practice. Market segmentation helps businesses target specific groups without manipulating pricing unfairly, and quality improvement typically enhances competition by encouraging all businesses to raise their standards, benefiting consumers overall.