A firm that is able to differentiate between each of its customers by selling the same good at a unique price to each customer is practicing:

Question

Quizplus · Accepted Answer

The definition provided in the question is of "perfect price discrimination" where a firm is able to charge each customer their "reservation price" or the maximum price they are willing to pay for a good. This allows the firm to capture all available consumer surplus, maximizing their profits. However, perfect price discrimination is rare in practice, as it requires a high level of information about each customer's preferences and reservation price.

A Firm That Is Able to Differentiate Between Each of Its