Under what conditions can a firm sell the same product at different prices?

If the firm is able to identify the prices that each customer is willing to pay for their product, and if the company is able to charge different customers different prices. This practice is called price discrimination. Examples include museums that ask for a student card to offer students a discount; Airline websites that charge different prices to different customers based on the customers' cookies.

Answered by Salomon L. Economics tutor

2356 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

Evaluate the advantages of perfectly competitive and monopolistic markets in the long run.


Under what conditions can a firm sell the same product at different prices?


When will a perfectly competitive firm shut down?


Explain the meaning of the law of demand, and using examples and diagrams, distinguish between movements along and shifts of the demand curve.


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2024

Terms & Conditions|Privacy Policy
Cookie Preferences