In 2021, a global pharmaceutical watchdog reported that a multinational biotech firm was charging healthcare providers in the United States 8,500foracourseofanewlyapprovedautoimmunemedication,whilechargingpublicclinicsinSouthAfricaonly 8,500 for a course of a newly approved autoimmune medication, while charging public clinics in South Africa only \,8,500foracourseofanewlyapprovedautoimmunemedication,whilechargingpublicclinicsinSouthAfricaonly250 for the exact same therapeutic treatment.
Explain the market conditions that enable firms to charge different customers different prices for the same product.
