Two companies, Klaren Electronics, a monopoly, and the Yarn Barn, a perfectly competitive firm, are interested in increasing their profits by using price discrimination. What is price discrimination? Will it help each company to accomplish their goal? Why or why

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Price Discrimination

Price discrimination or differential pricing is based on the principle that the seller will charge the buyer a price based on the buyer’s ability and willingness to pay for the product rather than applying uniform pricing for all.