Price discrimination is a pricing strategy in which a firm charges different prices to different groups of customers for the same product or service. This can be done for a variety of reasons, such as to maximize profits, to target specific market segments, or to match competitors' prices. There are several types of price discrimination, including first-degree, second-degree, and third-degree price discrimination. First-degree price discrimination involves charging each customer the maximum price that they are willing to pay, while second-degree price discrimination involves offering discounts to customers who buy in larger quantities. Third-degree price discrimination involves charging different prices to different groups of customers based on characteristics such as age, location, or membership in a particular organization. Price discrimination can be a controversial practice, as it can lead to higher prices for some customers and lower prices for others.
Hilal Ahmad Dar
Finding Variable Cost, Total fixed cost, Average cost, Average,Fixed Cost from Total cost function
To find the variable cost, total fixed cost, average cost, and average fixed cost from a total cost function, you can use the following formulas:
Variable cost = Total cost - Total fixed cost
Total fixed cost = Total cost - Variable cost
Average cost = Total cost / Quantity
Average fixed cost = Total fixed cost / Quantity
To use these formulas, you need to know the total cost function and the quantity of goods or services being produced. The total cost function is a mathematical equation that represents the total cost of producing a given quantity of goods or services. The quantity is the number of goods or services being produced.
