A firm charging different buyers' different prices for the same product is practicing ?
Correct answer: B. Price discrimination
- A. Competitive pricing.
- B. Price discrimination
- C. price discounting.
- D. price fixing.
Explanation
Price discrimination occurs when a seller charges different prices to different buyers for the same product, usually because their willingness to pay or market conditions differ. Price fixing is an agreement among firms to set prices, not charging different customers different prices.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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