Charging different prices to different customers for the same good or service is known as
A)monopoly
B)price setting
C)competition
D)price discrimination
E)rent seeking

Question

Quizplus · Accepted Answer

Charging different prices to different customers for the same good or service is called price discrimination. It occurs when businesses charge different prices based on the customer's willingness to pay or other characteristics such as age, gender, or location. Price discrimination can be a way for businesses to maximize profits by capturing surplus from customers who are willing to pay more, without losing customers who are less willing or able to pay.

Charging Different Prices to Different Customers for the Same Good