When firms charge different prices to different consumers for the same good or service,it is referred to as ________.

Question

Quizplus · Accepted Answer

Price discrimination is when firms charge different prices to different consumers for the same good or service. This practice can be used to maximize profits by charging higher prices to consumers who are willing to pay more, while still selling to consumers who cannot afford to pay the higher price at a lower price point. It can be considered unfair, but is not illegal as long as it does not discriminate on the basis of race, gender, or other protected classes.

When Firms Charge Different Prices to Different Consumers for the Same