If a Firm Sells to Two Distinct Identifiable Markets and Resale

question 98

Essay

If a firm sells to two distinct identifiable markets and resale is impossible,why is price discrimination more profitable than setting a single price?

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Definitions:

Reinforcements

In psychology, any stimulus that strengthens or increases the probability of a specific response.

White Blood Cells

Cells of the immune system that are involved in protecting the body against both infectious disease and foreign invaders.

Erythrocytes

Red blood cells which are responsible for carrying oxygen from the lungs to the body tissues and carbon dioxide as a waste product away.

Blood Platelets

Tiny blood cells that play a critical role in clotting, helping to stop bleeding by clumping and forming plugs in blood vessel injuries.