Question
Explain: Price Discrimination.

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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