Often, firms charge a range of prices for essentially the same good or service because of cost differences. For instance, filling a customer’s onetime small order for a product may be much more expensive than supplying “regular” orders. Services often are more expensive to deliver during peak-load periods. (Typically it is very expensive for a utility to provide electricity to meet peak demand during a hot August.) Insurance companies recognize that the expected cost of insuring different customers under the same policy may vary significantly. How should a profit-maximizing manager take different costs into account in setting prices?