Price discrimination is a pricing strategy whereby a firm’s prices for the same or very similar goods vary for customers in different markets. This can help the firm attain more profits compared to charging a single price. For example, a movie theater may offer a discount to students but charge non-students a higher price. Suppose you are a consultant to Southwest Airlines. How would you use price discrimination to get the most profits from your customers? Use the concepts from Module Four, including total revenue, marginal revenue, total cost and marginal cost, and the theory of profit maximization to argue your strategy. Do you have to be a monopoly to engage in price discrimination? Explain. Guidelines for Submission: Your response should be one to two pages in length with double spacing, 12-point Times New Roman font, one-inch margins, and APA citations. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions.
