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Mathematics & Economics
English (U.S.)
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Price Discrimination in Firms. Why firms use price discrimination? (Essay Sample)


Why firms use price discrimination? Is it wrong from a moral or ethical perspective?


Price Discrimination in Firms
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Price Discrimination in Firms
Price discrimination is the charging of various price to different categories of a consumer for the same product. It has benefits to the consumer for cheaper price value of the goods, which may encourage more sale leading high-profit margin of the firm. However, the advantages of price discrimination are only beneficial to some groups of consumers, while others suffer the problem of high prices (Esteves & Vasconcelos, 2015). The business uses three natures of price discrimination that includes first degree, second degree, and the third degree to control the volume of sales in the marketing. 

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