A firm's objective behind charging different prices to different consumers for the same good is to enhance ________.

Question

Quizplus · Accepted Answer

The objective of a firm charging different prices to different consumers for the same good is to increase its profits. By charging higher prices to consumers with a higher willingness to pay and lower prices to consumers with a lower willingness to pay, the firm can maximize its revenue and profit. This is commonly referred to as price discrimination. The other options are not relevant to the objective of price discrimination.

A Firm's Objective Behind Charging Different Prices to Different Consumers