Question

Which of the following best describes the practice of Internet price​ discrimination? A. Giving a product away​ free, but charging for add on services and upgrades B. Offering different prices based on the number of items ordered C. Allowing other consumers to see what buyers are paying for items in an online auction D. Offering different prices to different customers for the same product E. Offering price reductions only during a certain time of the year

Answer 1

D) Offering different prices to different customers for the same product

Step-by-step explanation:

A price discrimination strategy refers to selling the same product or service to different customers at different prices. Companies will try to charge each customer the highest price he/she is willing to pay for the product or service. Theoretically, if a company is able to carry out a successful price discrimination strategy, consumer surplus would be eliminated because the company would charge every customer the highest possible price.