Why do companies practice price discrimination?

Price discrimination recognizes that groups of consumers are willing and able to pay different amounts for a good.

Price discrimination enables companies to charge all consumers the same price for a good or service.

Price discrimination provides individual producers with an advantage in perfectly competitive markets.

Price discrimination allows companies to defend an illegal monopoly against free market competition.

The correct answer is Price discrimination recognizes that groups of consumers are willing and able to pay different amounts for a good.

Price discrimination is the idea that various groups of people are prepared to pay different amounts of money for the same product. This is used in maximizing money earned since every company wants to earn as much as possible and they charge people based on how much they are prepared to pay for. The small scale example of this would be bartering where people pay different prices after negotiating, some giving more and some less.