The practice of charging different prices to various groups of customers that are not based on differences in the costs of production is referred to as:
A)predatory pricing.
B)markup pricing.
C)discretionary pricing.
D)price discrimination.

Question

Quizplus · Accepted Answer

Price discrimination is when businesses charge different prices to different customers for the same product or service, and it can be used to increase profits by capturing the maximum amount of revenue possible from each customer. This practice may not always be legal or ethical, but it is used in various industries, such as airlines, hotels, and movie theatres. Predatory pricing refers to artificially low prices intended to drive competitors out of business, markup pricing focuses on adding a percentage to the cost of production, and discretionary pricing involves setting prices based on the business's goals and objectives.

The Practice of Charging Different Prices to Various Groups of Customers