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  • Explain why Siny Plc May Attempt to Discriminate on Price and Advise the Company on the Conditions Necessary for Implementing the Strategy

     

    Essays4 Economics, Business, Management

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ID number:125324
Evaluation:
Published: 23.05.2004.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

Price discrimination can be defined as the differences in the ratio of price to marginal cost across buyers or unit of a good. One form of price discrimination is the practice of a firm charging multiple prices for the same good where the difference in price is not attributable to a corresponding difference in cost. Another form of price discrimination is the practice of a firm charging the same price for all units of the same good when there are cost variations in supply.
Not all firms can price discriminate. For a firm to practice price discrimination three conditions must apply. First…

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