Although the seller has a cost advantage from some of her wood suppliers, she is optimizing her margins by not passing those savings on to her customers.
An artisan sells handcrafted wooden cutting boards and spoons. She acquires the wood from a variety of sources, and sometimes she is able to get a great deal on the wood. However, she charges the same price even if a batch of products has a lower cost. How is the seller engaging in price discrimination?
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