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?


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.

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