Question

Briefly discuss the concept of "price descrimination? Is it legal in our economic system? Why or why not?

Answer 1

Answer :- Price discrimination refers to practice of seller of charging different prices for the same product from the different customers so as to maximize the profit level. Monopolist sometimes follow the policy of price discrimination so as to increase his sales level and accordingly profit level. Price discrmination is considered as legal in the economic system of any nation only when the sellers prove that its cost per unit of product are different at the time of selling the product to the different retailers. In general sense, Price discrimination is not considered as legal because it generates inequality amongst the people of a nation.