Question

Write short notes Price Discrimination

Answer 1

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Answer 2

Price discrimination exists when the same product is sold at different prices to different buyers.  The cost of production is either the same, or it differs but not as much as the difference in the charged prices. Although price discrimination is more easily implemented by a monopolist, because he controls the whole supply of a given commodity, this price policy is quite commonly practiced by most firms, which charge a different price (give different discounts) to their customers depending on the item they purchase, the length of time they have dealt with the firm-seller, their location and other factors.