Gujarat BoardEnglish MediumSTD 11 CommerceEconomicsMarket2 Marks
Question
Explain: Price Discrimination.
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Answer
Price-discrimination:
The policy of a monopolist to charge different prices from customers of different categories/types in order to increase his demand is called price discrimination.
Due to absence of competition, the seller can charge different prices on the same product, depending on its use or form.
Thus, the seller adopts the concept of price discrimination and earns higher profit. For example, doctor, lawyer, etc. can charge different fees for similar problems.
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