If a Firm Charges Different Consumers Different Prices for the Same

question 45

Multiple Choice

If a firm charges different consumers different prices for the same product and the difference cannot be attributed to cost variations, then it is engaging in

• A)odd pricing.
• B)cost-plus pricing.
• C)price discrimination.
• D)markup pricing.

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Definitions:

Fixed Costs

Costs that do not change with the level of production or sales activity, such as rent, salaries, and insurance.

Seasonal Variation

Fluctuations in business activity, sales, or other economic indicators that occur at regular intervals based on the season.

ACCC

The Australian Competition and Consumer Commission, a regulatory body responsible for enforcing laws to prevent unfair market practices and protect consumer rights.

Market Power

The ability of a company or entity to influence the price and output levels in the market.