In one of its least favorite actions, Amazon.com was caught fiddling with its price tags.Avid videodisc buyers, buying in quantity for resale, found that the online store was offering different customers different prices for the same DVD, and complained vociferously.Amazon was caught red-handed.It was, company officials admitted, trying to see how much it could charge for an item before buyers balked.No matter what the reasoning behind it, Amazon.com was using
A)horizontal price-fixing.
B)resale price maintenance.
C)price discrimination.
D)predatory pricing.
E)bait-and-switch pricing.

Question

Quizplus · Accepted Answer

Amazon.com was offering different prices for the same DVD to different customers, which is a form of price discrimination. This practice is often used to maximize profits by charging different prices to different customers based on their willingness to pay. It is not considered illegal under antitrust laws, but it can sometimes lead to consumer backlash and public relations problems.

In One of Its Least Favorite Actions, Amazon