ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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psychological pricing
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bait and switch
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price discrimination
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deceptive pricing
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Detailed explanation-1: -Price discrimination is a selling strategy that charges customers different prices for the same product or service based on what the seller thinks they can get the customer to agree to. In pure price discrimination, the seller charges each customer the maximum price they will pay.
Detailed explanation-2: -Price discrimination is a sales strategy of selling the same product or service to different customers for different prices. First-degree price discrimination involves selling a product at the exact price that each customer is willing to pay.
Detailed explanation-3: -The conventional definition is that price discrimination is present when the same commodity is sold at different prices to different consumers.
Detailed explanation-4: -First-degree price discrimination, alternatively known as perfect price discrimination, occurs when a firm charges a different price for every unit consumed. The firm is able to charge the maximum possible price for each unit which enables the firm to capture all available consumer surplus for itself.
Detailed explanation-5: -First Degree Price Discrimination. Second Degree Price Discrimination. Third Degree Price Discrimination. #1 Imperfect competition. #2 Prevention of resale. #3 Elasticity of demand. The Firm. The Consumer.