If a firm charges different consumers different prices for the same product and the difference cannot be attributed to cost variations, then it is engaging in
A)odd pricing.
B)cost-plus pricing.
C)price discrimination.
D)markup pricing.

Question

Quizplus · Accepted Answer

Price discrimination refers to a firm charging different prices to different consumers for the same product, and it is not due to cost variation. This is often done to maximize profits by charging higher prices to those who are willing to pay more, while still selling to those with lower willingness to pay at a lower price. Odd pricing refers to using prices that end in odd numbers (e.g. $9.99) to make a product appear cheaper, cost-plus pricing refers to setting prices based on the cost of producing the product, and markup pricing refers to setting prices based on a percentage markup on the cost.

If a Firm Charges Different Consumers Different Prices for the Same