Get the answer of: Is Price Discrimination Socially Desirable? Price discrimination is beneficial to the poor buyers who can get the goods and services at relatively low prices. But it is not beneficial to the rich buyers who are compelled to pay higher prices for the same thing and so are deprived of the consumer's surplus which they might have [...]
We shall assume here that the monopolist practices third degree price discrimination, i.e., he charges different prices for his product in different markets. In this case, the first and foremost condition for price discrimination to be possible states that the product must not be resalable. In order to explain the point, let us suppose that the monopolist sells his product [...]
In this article we will discuss about the three degrees of price discrimination. First Degree Price Discrimination: If the monopolist charges a customer, for each unit of his product, a price that the latter is willing to pay in accordance with the level of utility derived by him from that unit, i.e., if the monopolist charges a price for any [...]