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Questions
Explain the following concept:
Price discrimination
What is meant by “price discrimination”?
What do you mean by price discrimination?
Explain price discrimination.
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Solution 1
- Price discrimination implies charging different prices for the same product to different buyers at the same time.
- Such discrimination is generally enjoyed by a monopolist.
- In other words, he can sell the same product to different buyers at different prices at the same or different time periods.
- Possibility of following Price discrimination is one of the important features of monopoly.
Solution 2
- Charging different rates for the same product to different customers is known as price discrimination.
- According to Joan Robinson, “Price discrimination is charging different price for the same product or same price for the differentiated product.”
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