Homework Help: micro

Posted by whhgn on Friday, October 27, 2006 at 2:08pm.

Price discrimination tends to be more common in the sale of services than in the sale of
manufactured goods. Explain why.

The basis condition that is to be fulfilled for the price discrimination is that there must not be any possibility of resale among the sellers of two markets. It is for that reason a doctor can charge two different fees to two patients. Thus possibility of resale is limited in case services than the manufactured products. So price discrimination is more common in case services than in case of manufactured products

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