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Price Discrimination

Published on Nov 25, 2015

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PRESENTATION OUTLINE

PRICE DISCRIMINATION

HAMZA HAMID, ASHLEY CRONIN
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Division of customers into groups based on how much they will pay for a good

Photo by TheeErin

Price discrimination is based on the idea that each customer has his or her own max price they will spend.

Monopolist may be able to divide consumers into two or more groups and charge a different price to each group.

Photo by Werner Kunz

Price discrimination is a way to separate the wealthy from middle class or middle class from the poor.