RE: Sales can change with discrimination among units of output. How?

Sales can change with discrimination among units of output. How?

 

 

answer:

There is an aspect of discrimination which is known as group pricing where diffeerent prices are charged for different blocks of output between different groups of consumers. This is known as group pricing and the monopoly uses this to maximize its profits. The objective of the consumer is to use this to sieze all the consumer surplus of the consumers in the market. The idea behind group pricing is to charge different prices for different groups of consumers. Thus sales can change with price discrimination among units of output.

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Answered on May 29, 2017.
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