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Price Discrimination

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Price Discrimination

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  1. Price Discrimination Presented By: http://www.essayconsultancy.com/

  2. Introduction • A firm may choose to charge various prices for its identical goods. • This is to different segments of the market. • This practice is referred to as price discrimination. www.essayconsultancy.com

  3. Argument of Price Discrimination • Its legality and is controversial. • People argue that it is illegal and unethical. • Customers are discriminated using prices. • Some say businesses have the right to set their prices. www.essayconsultancy.com

  4. Promoting Factors of Price Discrimination: Consumer ignorance • Consumers may not be aware of the cost of a service. • They may not know their prices elsewhere. • Suppliers take advantage of this. • This is especially in medical practices. www.essayconsultancy.com

  5. Legality Of Price Discrimination • It can be legally practiced in a free market. • It benefits the business by maximizing its revenues. • Extra income is reinvested to enlarge the business. • This will benefit the society. • Can be used by a firm as a competitive strategy. • Consumer may enjoy as long as competition is alive. www.essayconsultancy.com

  6. For More Information on price discrimination Visit: http://www.essayconsultancy.com/

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