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What is second-degree price discrimination based on?
Price discrimination is a concept which enables differing pricing on different products to may be to a different consumer which does not affect the true cost difference in order to justify the difference in pricing. 2nd degree price discrimination is based on the number of quantities sold in the market.
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What is 2nd degree price discrimination?
In this type, companies cannot really differentiate between the type of consumers. Under this practice, the company creates a schedule where they decline prices for different quantities of the products in the market. Under this category, one can notice the change in bulk buying by large buyers or consumers. Someone like Wal-Mart who uses their savings into eventual consumers is an example of the same.
One common example of this type can be seen in the retail availing discounts which mean when the consumer is buying more, they are saving more. In order to relate to such practical examples, we will help you with certain real time examples on the same. Register for our services with second-degree price discrimination homework help, and you will easily grab the definition.
One such common example is when people buy a large box of biscuits as it is cheaper than buying 5 small boxes of the similar biscuit. Well, yes, such a beneficial product is not under consideration by students who are living alone. But families often consider such promotions in a retail market. As a student of economics, it is important for students to understand the variations of pricing under different quantities. If you are finding it difficult to relate to the same, you must register for second-degree price discrimination assignment help. The quality of the content will help you with better understand.
Some super and hypermarkets also allow the consumers to compare the price of per kg product to the one which is available in bulk. That way, the consumer can realize to the fact that bulk buying is actually useful profitable for them.
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