Suppose there is one firm in a market.If this firm sells the same good at different prices to different customers, then this practice is called:
A)price determination
B)predatory pricing
C)variable pricing
D)price discrimination

Question

Quizplus · Accepted Answer

The practice of selling the same good at different prices to different customers is called price discrimination. The firm may do this to maximize profits by charging higher prices to customers who are willing to pay more, while also attracting customers who are more price-sensitive with lower prices. However, price discrimination can be illegal if it is used to harm competition or if it involves discrimination based on protected characteristics such as race or gender.

Suppose There Is One Firm in a Market