{"id":4069,"date":"2020-03-24T06:53:43","date_gmt":"2020-03-24T06:53:43","guid":{"rendered":"https:\/\/commerceiets.com\/?p=4069"},"modified":"2020-03-24T06:53:43","modified_gmt":"2020-03-24T06:53:43","slug":"price-discrimination","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/price-discrimination\/","title":{"rendered":"PRICE DISCRIMINATION"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" 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href=\"https:\/\/commerceiets.com\/price-discrimination\/#PRICE_DISCRIMINATION_UNDER_MONOPOLY\" title=\"PRICE DISCRIMINATION UNDER MONOPOLY\">PRICE DISCRIMINATION UNDER MONOPOLY<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/price-discrimination\/#Price_discrimination_refers_to_the_charging_of_different_prices_by_the_monopolist_for_the_same_product\" title=\"Price discrimination refers to the charging\nof different prices by the monopolist for the same product.\">Price discrimination refers to the charging\nof different prices by the monopolist for the same product.<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/price-discrimination\/#TYPES_OF_PRICE_DISCRIMINATION\" title=\"TYPES OF PRICE DISCRIMINATION\">TYPES OF PRICE DISCRIMINATION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/price-discrimination\/#DEGREES_OF_PRICE_DISCRIMINATION\" title=\"DEGREES OF PRICE DISCRIMINATION\">DEGREES OF PRICE DISCRIMINATION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/price-discrimination\/#NECESSARY_CONDITIONS_FOR_PRICE_DISCRIMINATION\" title=\"NECESSARY CONDITIONS FOR PRICE DISCRIMINATION\">NECESSARY CONDITIONS FOR PRICE DISCRIMINATION<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/commerceiets.com\/price-discrimination\/#ADVANTAGES\" title=\"ADVANTAGES \">ADVANTAGES <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/commerceiets.com\/price-discrimination\/#DISADVANTAGES\" title=\"DISADVANTAGES \">DISADVANTAGES <\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/commerceiets.com\/price-discrimination\/#EQUILIBRIUM_DETERMINATION_UNDER_DISCRIMINATING_MONOPOLY\" title=\"EQUILIBRIUM DETERMINATION UNDER DISCRIMINATING MONOPOLY\">EQUILIBRIUM DETERMINATION UNDER DISCRIMINATING MONOPOLY<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1 class=\"has-text-align-center wp-block-heading\" id=\"price-discrimination-under-monopoly\"><span class=\"ez-toc-section\" id=\"PRICE_DISCRIMINATION_UNDER_MONOPOLY\"><\/span><strong>PRICE DISCRIMINATION<\/strong> <strong>UNDER MONOPOLY<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<h6 class=\"wp-block-heading\" id=\"price-discrimination-refers-to-the-charging-of-different-prices-by-the-monopolist-for-the-same-product\"><span class=\"ez-toc-section\" id=\"Price_discrimination_refers_to_the_charging_of_different_prices_by_the_monopolist_for_the_same_product\"><\/span>Price discrimination refers to the charging\nof different prices by the monopolist for the same product.<span class=\"ez-toc-section-end\"><\/span><\/h6>\n\n\n\n<p>The difference in the product may be on the\nbasis of brand, wrapper etc. This policy of the monopolist is called price discrimination.<\/p>\n\n\n\n<p><strong>ACCORDING\nTO KOUTSOYIANNIS<\/strong><strong><\/strong><\/p>\n\n\n\n<p>\u201cPrice discrimination exists when the same\nproduct is sold at different prices to different buyers.\u201d <\/p>\n\n\n\n<p><strong>ACCORDING\nTO STIGLER<\/strong><\/p>\n\n\n\n<p>\u201cPrice discrimination refers to the sale of technically\nsimilar products at prices which are not proportional to their marginal cost.\u201d <\/p>\n\n\n\n<p><strong>ACCORDING TO ROBINSON<\/strong><\/p>\n\n\n\n<p>&nbsp;\u201cPrice\ndiscrimination is charging different prices for the same product or same price\nfor the differentiated product.\u201d<\/p>\n\n\n\n<p><strong>ACCORDING TO PROF. DOOLEY<\/strong><\/p>\n\n\n\n<p>&nbsp;\u201cDiscriminatory\nmonopoly means charging different rates from different customers for the same\ngood or service.\u201d<\/p>\n\n\n\n<p><strong>ACCORDING TO J.S. BAINS<\/strong><\/p>\n\n\n\n<p>\u201cPrice discrimination refers strictly to the practice by\na seller to charging different prices from different buyers for the same good.\u201d<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"types-of-price-discrimination\"><span class=\"ez-toc-section\" id=\"TYPES_OF_PRICE_DISCRIMINATION\"><\/span><strong>TYPES OF PRICE DISCRIMINATION<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Price discrimination is a common pricing strategy\u2019 used\nby a monopolist having discretionary pricing power. This strategy is practiced\nby the monopolist to gain market advantage or to capture market position.<\/p>\n\n\n\n<p><strong>There are three types of price discrimination\nwhich are as follows:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"343\" height=\"133\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-68.png\" alt=\"\" class=\"wp-image-4072\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-68.png 343w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-68-300x116.png 300w\" sizes=\"(max-width: 343px) 100vw, 343px\" \/><\/figure>\n\n\n\n<p><a href=\"http:\/\/cdn.economicsdiscussion.net\/wp-content\/uploads\/2015\/01\/clip_image00241.jpg\" target=\"_blank\" rel=\"noopener\"><\/a><\/p>\n\n\n\n<p><strong>PERSONAL DISCRIMINATION<\/strong><\/p>\n\n\n\n<p>It refers to price discrimination when different prices\nare charged from different individuals. The different prices are charged\naccording to the level of income of consumers as well as their willingness to\npurchase a product. For example, a doctor charges different fees from poor and\nrich patients.<\/p>\n\n\n\n<p><strong>GEOGRAPHICAL DISCRIMINATION<\/strong><\/p>\n\n\n\n<p>It refers to price discrimination when the monopolist\ncharges different prices at different places for the same product. This type of\ndiscrimination is also called dumping.<\/p>\n\n\n\n<p><strong>DISCRIMINATION ON THE BASIS OF\nUSE<\/strong><\/p>\n\n\n\n<p>It occurs when different prices are charged according to\nthe use of a product. For instance, an electricity supply board charges lower\nrates for domestic consumption of electricity and higher rates for commercial\nconsumption.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"degrees-of-price-discrimination\"><span class=\"ez-toc-section\" id=\"DEGREES_OF_PRICE_DISCRIMINATION\"><\/span><strong>DEGREES OF PRICE DISCRIMINATION<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Price discrimination has become widespread in almost every market. In economic jargon, price discrimination is also called monopoly price discrimination or yield management. The degree of price discrimination varies in different markets.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"283\" height=\"129\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-69.png\" alt=\"\" class=\"wp-image-4073\"\/><\/figure>\n\n\n\n<p><strong>FIRST-DEGREE PRICE\nDISCRIMINATION<\/strong><\/p>\n\n\n\n<p>The limit is defined in the concept of discrimination of\nthe first degree, a concept introduced by A.C. Pigou. In discrimination of the\nfirst degree, the monopolist knows the maximum amount of money each consumer\nwill pay for any quantity. He then fixes up prices accordingly and takes from\neach consumer the entire amount of his consumer\u2019s surplus.<\/p>\n\n\n\n<p><strong>SECOND-DEGREE PRICE\nDISCRIMINATION<\/strong><\/p>\n\n\n\n<p>It refers to a price discrimination in which buyers are\ndivided into different groups and different prices are charged from these\ngroups depending upon what they are willing to pay. Railways and airlines\npractice this type of price discrimination.<\/p>\n\n\n\n<p><strong>THIRD-DEGREE PRICE\nDISCRIMINATION<\/strong><\/p>\n\n\n\n<p>It refers to a price discrimination in which the\nmonopolist divides the entire market into submarkets and different prices are\ncharged in each submarket. Therefore, third-degree price discrimination is also\ntermed as market segmentation.<\/p>\n\n\n\n<p>In this type of price discrimination, the monopolist is\nrequired to segment market in a manner, so that products sold in one market\ncannot be resold in another market. Moreover, he\/she should identify the price\nelasticity of demand of different submarkets. The groups are divided according\nto age, sex, and location. For instance, railways charge lower fares from\nsenior citizens. Students get discount in cinemas, museums, and historical\nmonuments.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"necessary-conditions-for-price-discrimination\"><span class=\"ez-toc-section\" id=\"NECESSARY_CONDITIONS_FOR_PRICE_DISCRIMINATION\"><\/span><strong>NECESSARY CONDITIONS FOR PRICE DISCRIMINATION<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Price discrimination implies charging different prices\nfor identical goods.<\/p>\n\n\n\n<p>It is\npossible under the following conditions:<\/p>\n\n\n\n<p><strong>Existence of <a href=\"https:\/\/commerceiets.com\/monopoly-meaning\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Monopoly (opens in a new tab)\">Monopoly<\/a>:<\/strong><\/p>\n\n\n\n<p>This Implies that a supplier can discriminate prices only\nwhen there is monopoly. The degree of the price discrimination depends upon the\ndegree of monopoly in the market.<\/p>\n\n\n\n<p><strong>Separate Market:<\/strong><\/p>\n\n\n\n<p>This Implies that there must be two or more markets that\ncan be easily separated for discriminating prices. The buyer of one market\ncannot move to another market and goods sold in one market cannot be resold in\nanother market.<\/p>\n\n\n\n<p><strong>No Contact between Buyers:<\/strong><\/p>\n\n\n\n<p>This Refers to one of the most important conditions for\nprice discrimination. A supplier can discriminate prices if there is no contact\nbetween buyers of different markets. If buyers in one market come to know that\nprices charged in another market are lower, they will prefer to buy it in other\nmarket and sell in own market. The monopolists should be able to separate\nmarkets and avoid reselling in these markets.<\/p>\n\n\n\n<p><strong>Different Elasticity of Demand:<\/strong><\/p>\n\n\n\n<p>This Implies that the elasticity of demand in the markets should differ from each other. In markets with high <a href=\"https:\/\/commerceiets.com\/elasticity-of-demand\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"elasticity of demand (opens in a new tab)\">elasticity of demand<\/a>, low price will be charged, whereas in markets with low elasticity of demand, high prices will be charged. Price discrimination fails in case of markets having same elasticity- of demand.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"advantages\"><span class=\"ez-toc-section\" id=\"ADVANTAGES\"><\/span><strong>ADVANTAGES <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A monopolist practices price discrimination to gain\nprofits. However, it acts as a loss for the consumers.<\/p>\n\n\n\n<p><strong>Following are some of the\nadvantages of price discrimination:<\/strong><\/p>\n\n\n\n<ul><li>Helps organizations to earn\nrevenue and stabilize the business<\/li><li>Facilitates the expansion plans\nof organizations as more revenue is generated<\/li><li>Benefits customers, such as\nsenior citizens and students, by providing them discounts<\/li><\/ul>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"disadvantages\"><span class=\"ez-toc-section\" id=\"DISADVANTAGES\"><\/span><strong>DISADVANTAGES <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Some of the disadvantages of\nprice discrimination as follows:<\/strong><\/p>\n\n\n\n<p>i. Leads to losses as some consumers end up paying higher\nprices<\/p>\n\n\n\n<p>ii. Involves administration costs for separating markets.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"equilibrium-determination-under-discriminating-monopoly\"><span class=\"ez-toc-section\" id=\"EQUILIBRIUM_DETERMINATION_UNDER_DISCRIMINATING_MONOPOLY\"><\/span><strong>EQUILIBRIUM DETERMINATION UNDER DISCRIMINATING MONOPOLY<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Equilibrium Conditions of a\nDiscriminating Monopoly<\/strong><\/p>\n\n\n\n<p>If a discriminating monopolist is to be in equilibrium,\ntwo separate conditions have to be fulfilled.<\/p>\n\n\n\n<p><strong>(1) Marginal revenue in both\n(or all) markets must be the same:<\/strong><\/p>\n\n\n\n<p>When the elasticity of demand for a monopolist\u2019s product is different in different markets, he would supply a smaller amount and charge a high price for the product where the demand is inelastic; but he would supply a larger amount and charge a low price for the same where the <a href=\"https:\/\/commerceiets.com\/demand\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"demand (opens in a new tab)\">demand<\/a> is elastic. By doing so, he will have to equalise the marginal revenue in both or all markets.<\/p>\n\n\n\n<p><strong>(2) The <a href=\"https:\/\/commerceiets.com\/revenue\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"marginal revenue (opens in a new tab)\">marginal revenue<\/a> derived from each of these markets must also equal the <a href=\"https:\/\/commerceiets.com\/concept-of-costs\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"marginal cos (opens in a new tab)\">marginal cos<\/a>t of the monopolist\u2019s total output:<\/strong><\/p>\n\n\n\n<p>It means that the monopolist would supply the different\namounts in A and B markets in such a way and up to that amount at which the\nmarginal revenue from the sale in each of these markets must be equal to the\nmonopolist\u2019s marginal cost of producing the total output (aggregate of output\nin A and B).<\/p>\n\n\n\n<p><strong>In other words, the equilibrium\ncondition of a discriminating monopolist becomes:<\/strong><\/p>\n\n\n\n<p>MR<sub>1<\/sub>&nbsp;(marginal\nrevenue in market A) = MR<sub>2<\/sub>&nbsp;(marginal\nrevenue in market B) = MC.<\/p>\n\n\n\n<p>These two conditions are nothing more than an application\nof the general principle of equilibrium, i.e., MR = MC.<\/p>\n\n\n\n<p>The equilibrium under discriminating monopoly can be\nshown in the following figure.<\/p>\n\n\n\n<p>In Figure (a) and (b) show the average and marginal revenue curves of the firm for two separate markets (sub-market A and sub-market B). These markets have different elasticities of demand at each price. In Figure (c) the profit maximising output (OM) is shown at the intersection of the marginal cost curve (MC) for the monopolist\u2019s whole output, with the curve showing combined marginal revenue (CMR) obtained from the two markets. The curve CMR is obtained by adding the curves MR<sub>1<\/sub>&nbsp;and MR<sub>2<\/sub>&nbsp;together sideways.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"532\" height=\"240\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-70.png\" alt=\"\" class=\"wp-image-4074\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-70.png 532w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-70-300x135.png 300w\" sizes=\"(max-width: 532px) 100vw, 532px\" \/><\/figure>\n\n\n\n<p><a href=\"http:\/\/cdn.economicsdiscussion.net\/wp-content\/uploads\/2016\/12\/clip_image004-15.jpg\" target=\"_blank\" rel=\"noopener\"><\/a><\/p>\n\n\n\n<p>In this equilibrium situation, the output is OM, and\nmarginal revenue is OL or MR. The output OM has, therefore, to be distributed\nbetween the two separate markets in such a way that marginal revenue in each is\nOL. It means that OM\u2019 is to be sold in sub-market A at price OP (marginal\nrevenue is here OL).<\/p>\n\n\n\n<p>Similarly, OM\u201d must be sold in sub-market B at a price of\nOP\u201d (marginal revenue here is also OL). The monopolist\u2019s profit is shown by the\narea ARB in Figure (c) and here it is at a maximum.<\/p>\n\n\n\n<p><strong>Output under Price\nDiscrimination:<\/strong><\/p>\n\n\n\n<p>The total output of a monopolist with two or more prices\ncan be either larger or smaller than his total output if he would sell at one\nprice. Conceiv\u00adably, too, a monopolist could have an output equal to the output\ncorre\u00adsponding to conditions of pure competition.<\/p>\n\n\n\n<p>In practice, demand and cost relations can be such that\nwithout discrimi\u00adnation a particular commodity or service will not be produced\nat all. Take the case of India\u2019s sugar industry. If free sale of sugar is\nprohibited produc\u00adtion of sugar will be unprofitable.<\/p>\n\n\n\n<p>Some commodities and services might not be produced at all if sellers were not be able or were not allowed to practice price discrimination. The standard and simple example is the physician in a small village. Similarly, railroad service on a particular route might depend on the ability of the railroad to charge higher rates to some groups of commuters than to others.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/demand\/\">Theory of Demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-demand\/\">Law of Demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/demand-function\/\">Demand Function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/exceptions-of-law-of-demand\/\">Exceptions of law of demand<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/elasticity-of-demand\/\">Elasticity of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/change-in-demand\/\">Change in demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/price-elasticity-of-demand\/\">Price elasticity of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-law-of-demand-and-elasticity-of-demand\/\">Law of demand Vs Elasticity of demand<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/\">Factors affecting price elasticity of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/production-function\/\">Production function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-short-run-long-run-production-function\/\">Short run vs long run production function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-variable-proportions\/\">Law of variable proportions<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/types-of-demand\/\">Types of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/managerial-economics\/\">Managerial economics<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/characteristics-of-managerial-economics\/\">Characteristics of managerial economics<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-managerial-economics\/\">Scope of managerial economics<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/utility-analysis\/\">Utility analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-diminishing-marginal-utility\/\">Law of diminishing marginal utility<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-equi-marginal-utility\/\">Law of equi marginal utility<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/consumer-equilibrium\/\">Consumers Equilibrium<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/indifference-curve-analysis\/\">Indifference curve analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/consumer-equilibrium-using-indifference-curve-analysis\/\">Consumer equilibrium using indifference curve analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/relationship-between-tp-ap-and-mp\/\">Relationship between TP, AP and MP<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-increasing-returns\/\">Law of increasing returns<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/law-of-diminishing-returns\/\">Law of diminishing returns<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-constant-returns\/\">Law of constant returns<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/returns-to-scale\/\">Returns to Scale<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/economies-and-diseconomies-of-scale\/\">Economies and diseconomies of scale<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/concept-of-costs\/\">Concept of costs<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/relationship-between-ac-and-mc\/\">Relationship between AC and MC<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/traditional-theory-of-cost\/\">Traditional theory of costs<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/modern-theory-of-cost\/\">Modern theory of costs<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/explicit-vs-implicit-costs\/\">Explicit vs Implicit costs<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revenue\/\">Revenue<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/perfect-competition\/\">Perfect competition<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/monopoly-meaning\/\">Monopoly<\/a>&nbsp;<\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/price-discrimination\/\">Price discrimination<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-perfect-competition-and-monopoly\/\">Difference between perfect competition and monopoly<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/perfect-and-monopolistic-competition\/\">Perfect Vs Monopolistic competition<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/monopoly-and-monopolistic-competition\/\">Monopoly and monopolistic competition<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/product-differentiation-strategy\/\">Product differentiation strategy<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/monopolistic-competition\/\">Monopolistic competition<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/national-income-in-india\/\">National Income in India<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/measurement-of-national-income\/\">Measurement of national income in India<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/consumption-function\/\">Consumption function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/keynesian-psychological-law-of-consumption\/\">Keynes Psychological law of consumption<\/a><\/td><td><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>PRICE DISCRIMINATION UNDER MONOPOLY Price discrimination refers to the charging of different prices by the monopolist for the same product. The difference in the product may be on the basis of brand, wrapper etc. This policy of the monopolist is called price discrimination. ACCORDING TO KOUTSOYIANNIS \u201cPrice discrimination exists when the same product is sold&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/price-discrimination\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;PRICE DISCRIMINATION&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":4071,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[113,92],"tags":[],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/4069"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=4069"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/4069\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/4071"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=4069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=4069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=4069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}