When a firm has a single price and it faces a downward-sloping demand curve, it must reduce its price for all units in order to sell one more unit. In order to understand (perfect) first-degree price discrimination, let’s see what happens when there is no price discrimination i.e. ![]() ![]() First-degree price discrimination (also called perfect price discrimination) occurs when a producer charges each consumer his reservation price, the maximum amount that he is willing to pay, for each unit.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |