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State and explain ways through which firms can price discriminate.

      

State and explain ways through which firms can price discriminate.

  

Answers


John
1. First degree price discrimination.
This means that the monopolist sells different units of output for different prices and these prices may differ from one person to another.
2. Second degree price discrimination.
Means that the monopolist sells different units of output for different prices but every individual who buys the same amount of the good pays the same price. Thus price differ across the units of the good but not across the people.
3. Third degree price discrimination.
It is where the monopolist Sells output to the different people for different prices but every unit of output sold to a given person sells for the same price.
Jonmhumble answered the question on November 3, 2017 at 18:24


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