In order to price discriminate, firms must identify a customer's or a group of customers' willingness to pay.

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices for the same product or service based on the customer's perceived willingness to pay. Therefore, firms must identify the maximum amount a customer or group of customers is willing to pay in order to set price levels accordingly.

In Order to Price Discriminate, Firms Must Identify a Customer's