Respuesta :
Price discrimination encourages enterprises to expand output until their marginal cost and the marginal benefit of their previous customer are equal.
Businesses that discriminate against customers set their prices so that marginal cost and marginal profit are equal for all clients.
How does pricing discrimination impact productivity?
A company can sell at a significantly higher production thanks to price discrimination. As a result, it is making use of its earlier spare capacity. The business can use its production elements more effectively as a result. Greater earnings are also possible thanks to the company's higher output, which enables it to cut long-term average costs.
Is price discrimination still viable in a weak market?
With the exception of perfect competition, all market structures have the possibility for pricing discrimination. A company may be able to use price discrimination as long as it faces a downward-sloping demand curve and thus has some level of monopoly power.
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