Selling alternative versions of a product at different prices is a way to identify the _____ of customers and charge them different prices.
A)reservation price
B)marginal cost
C)size of the population
D)observable differences

Question

Quizplus · Accepted Answer

Selling alternative versions of a product at different prices is a way to identify the reservation price of customers, which is the maximum price they are willing to pay for a product or service. By offering different versions of the product at different prices, businesses can identify different segments of customers with different reservation prices and charge them accordingly.

Selling Alternative Versions of a Product at Different Prices Is