APE 36

Price Discrimination
When producers have market power and they sell a good that cannot be resold, the possibility for price discrimination arises. Price discrimination occurs when a producer is able to charge consumers with different tastes and preferences different prices for the same good.
We know profit maximization for a firm that is able to set a single price occurs when the firm produces the quantity at which MR = MC. If a producer is able to price discriminate, however, then profits can be even higher.

A36- Price Discrimination









PartB-4-6


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