Tom is a dentist in Kentucky. Because of the nature of his business, he can charge different prices to different customers for the same service, even though the cost of serving those customers is the same. Tom is practicing:
A)privatization.
B)monopolization.
C)output competition.
D)price discrimination.

Question

Quizplus · Accepted Answer

Tom is practicing price discrimination, which occurs when a seller charges different prices to different buyers for the same product or service, even though the cost of providing those products or services is the same. In this case, Tom is able to charge different prices to different customers for dental services, even though the cost of providing those services is the same. This can be a profitable strategy for businesses, but it can also be seen as unfair to customers who are charged higher prices simply because of their willingness to pay.

Tom Is a Dentist in Kentucky