in order to be a successful price discriminator, a provider must have a degree of market power (depicted by a downward-sloping demand curve) and meet what other condition(s)?

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15-11-2022
Business

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in order to be a successful price discriminator, a provider must have a degree of market power (depicted by a downward-sloping demand curve) and meet what other condition(s)?

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sapanpandit sapanpandit · Answer 1 · 2022-11-18T08:09:16+01:00

A price discriminator must be able to classify potential customers based on their willingness to pay and limit the opportunities for reselling the product or service.

A selling tactic known as price discrimination involves charging customers various prices for the same good or service depending on what the seller believes they can persuade the customer to accept. When a seller uses pure price discrimination, they charge each customer the highest price they will agree to.

In more prevalent types of price discrimination, the seller divides customers into groups based on particular characteristics and assesses a different price to each group.

Learn more about price discrimination here:

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