K&G Restaurant Supplies sells paper products and commodity items like flour to for-profit businesses. It charges a substantially lower price to companies that operate multiple locations such as a restaurant chain. It charges a higher price to small or independent operations because they are less profitable customers. What is K&G Restaurant Supplies engaging in?

Question

Quizplus · Accepted Answer

K&G Restaurant Supplies is engaging in price discrimination because it is charging different prices to different customers for the same product based on their business size and profitability. This practice is legal as long as it does not violate anti-discrimination laws.

K&G Restaurant Supplies Sells Paper Products and Commodity Items Like