discrimination in prices are often seen in the market . how can you justify the same. what do you...

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discrimination in prices are often seen in the market . how can you justify the same. what do you understand by price discrimination and how can a firm discriminate the prices of a product. If a firm follows PD, under what circumstances it is possible to follow the same .

David · Accepted Answer

Price discrimination refers to charging different prices for the same 
product, for reasons not associated with costs. The price 
discrimination may be based on group of customers, places, time and 
slight product variation.  
 
There are four types of price discrimination. 
 
1. First degree price discrimination  
Charging the maximum amount that the customer is willing to pay. 
The seller is able to capture all the consumer surplus of the 
purchaser .

discrimination in prices are often seen in the market . how can you justify the same. what do you understand by price discrimination and how can a firm discriminate the prices of a product. If a firm...

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