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Explain How Cost Shifting Differs From Price Discrimination

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There are two important definitions. Price discrimination occurs based an an individuals willingness to pay. Price Discrimination Price discrimination is the practice of charging different markups for the same product Is the result when a firm charges different prices for the same product or prices closely related products where the price differences are not proportional to cost differences. . The marginal cost of production is only 090 and 125. Answer does not depend on Scenario. In general price discrimination is said to exist whenever different classes of customers are charged different prices for the same product or when a multi-product firm prices closely related products in such a manner that the differences in their prices are not proportional to the differences in their costs of production. Cost shifting occurs when one purchaser does not pay the full charges and a purchaser who can afford to pay the charges has r...
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