Ava Lawnmowers Inc. is a company that manufactures and sells lawn mowers. Since it faces stiff competition in the market, it sells its products at different prices depending on the number of lawn mowers purchased by the consumers. In this scenario, the company indulges in _____.

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Price discrimination involves selling the same product at different prices to different customers based on factors such as quantity purchased, location, or demographic information. In this scenario, Ava Lawnmowers Inc. sells its lawn mowers at different prices based on the number of mowers purchased, which is a form of price discrimination. Penetration pricing involves setting low prices to enter a new market, while price skimming involves setting high prices initially and then gradually reducing them. Predatory pricing involves setting prices low with the intention of driving competitors out of the market.