Final answer:
Price discrimination is the practice of selling the same product at different prices to different consumers, often occurring in markets with monopolistic competition due to differentiated products and bundling deals.
Step-by-step explanation:
The practice of selling the same good or service to different consumers at different prices is known as price discrimination. This practice is common in monopolistic competition, where firms sell differentiated products. Price discrimination is the practice of selling the same product at different prices to different consumers, often occurring in markets with monopolistic competition due to differentiated products and bundling deals.
Price discrimination can occur due to a variety of factors, including customer location, purchase volume, or even through special deals like bundling. For example, cable companies may provide customers with a reduced price for a bundle of services such as cable, internet, and a phone line compared to purchasing each service separately, creating a perceived value for consumers.