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Which statement best describes the practice of price differentiation? A. Charging different customers different prices for...

Which statement best describes the practice of price differentiation? A. Charging different customers different prices for the same product is unfair. B. Charging different customers different prices for the same product might be unfair, but our responsibility is to maximize shareholder wealth. C. Charging different customers different prices for the same product allows the firm to increase profitability by better aligning price with customer value. D. Charging different customers different prices for the same product allows the firm to increase profitability by reducing total cost. E. Different products should have different prices. If not, a firm wouldn't be able to cover its costs.

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Answer #1

Option C is correct

Charging different customers different prices for the same product allows the firm to increase profitability by better aligning price with customer value.Different market has different type of customer ,Europe has a high income group customer whereas certain African countries market has low income group customer so the price cant be charged same in these two markets if the the same price is charged in African market as charged in European market then sale will be low in Africa which can be increased by charging less in African market than in European market and hence net profit can be increased

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