Critics charge that allowing firms to charge for Internet service based on bandwidth use will lead to

Question

Quizplus · Accepted Answer

Price discrimination is the practice of charging different prices for the same product or service based on the consumer's willingness to pay. Allowing firms to charge for Internet service based on bandwidth use would lead to price discrimination as heavy users would be charged more than light users. This would benefit the firms by maximizing their profits but could lead to unfair prices for certain consumers. Choices B and C are not relevant to this scenario, and choice D is unlikely as charging for bandwidth use would likely result in higher prices for heavy users.

Critics Charge That Allowing Firms to Charge for Internet Service