The practice of selling the same goods to different customers at different prices, but with the same marginal cost, is known as:
A)price discrimination
B)monopoly pricing
C)arbitrage
D)price segregation

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices for the same product to different customers, with the goal of maximizing profits. This strategy is used to capture the maximum amount of consumer surplus possible, as customers who are willing and able to pay more can be charged a higher price. It is important to note that price discrimination is only possible when there is some degree of market power, such as a monopoly or oligopoly.

The Practice of Selling the Same Goods to Different Customers