Price Discrimination

Price Discrimination:

Price discrimination refers to the practice of selling similar commodity at distinct prices to various buyers. When the monopolist charges distinct prices from various consumers for identical commodity, it is termed as price discrimination or discriminating monopoly.

Definition:

Price discrimination might be stated as “the sale of technically identical products at prices that are not proportional to marginal cost”. For illustration, all cinema theatres charge dissimilar prices for different groups of people.

 

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