The use of differential pricing should
A)decrease total profits for a firm.
B)increase total profits for a firm.
C)increase capacity for a firm.
D)decrease capacity utilization for a firm.

Question

Quizplus · Accepted Answer

Differential pricing allows a firm to charge different prices to different customers for the same product or service. By doing so, the firm can increase its overall profits as it can capture a larger share of the market while still maintaining profitability. This strategy can also help the firm to target different customer segments and increase demand for their product or service. Therefore, differential pricing should increase total profits for a firm.

The Use of Differential Pricing Should