Selling a product at different prices when the price difference is unrelated to costs is a practice known as
A) price fixing.
B) price monopolization.
C) price discrimination.
D) price differentiation.

Question

Quizplus · Accepted Answer

Price discrimination refers to selling the same product at different prices without any relation to costs. This practice is often used to maximize profits by charging higher prices to customers who are willing to pay more while attracting price-sensitive customers with lower prices. Price fixing involves collusion among firms to set prices, price monopolization refers to a situation where one firm dominates the market and sets prices, and price differentiation is a broader term that includes both cost-based and non-cost-based differences in product prices.

Selling a Product at Different Prices When the Price Difference