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lawyer [7]
3 years ago
14

How does price discrimination help cover fixed costs?

Business
1 answer:
Svetradugi [14.3K]3 years ago
3 0
For the case of a consumer with an inelastic demand curve, it is less costly to cater for them, hence reducing the production fixed cost. given that different customers will be charged differently for the same product, it is easy to cover for a low profit range.
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