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Price Discrimination
Price Discrimination
Price Discrimination
Price Discrimination
Price Discrimination
Price Discrimination
Price Discrimination
Price Discrimination
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Price Discrimination

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  • The recent crisis has led to demand recession in world economy. If we take Indian example then we all know that Indian economy is growing at a robust rate of around 7% so it becomes a very tempting proposition to for global suppliers to dump their goods in India. hence it is of critical importance to ensure that we do not becoming a dumping ground for cheap goods destroying our domestic industry in this period of global gloom.China recently raised the tariffs on number of goods such as luxury watches from 10% to 30%, cosmetics from 20% to 50% to avert such possiblities.
  • Transcript

    • 1. Price Discrimination
      Different Price to Different Customer
    • 2. Dumping
      • Effects of Dumping
      • 3. Recent safeguards by some countries.
      Example - China
    • 4. Loss of Consumer Surplus
      New Consumer Surplus
      Loss of Consumer Surplus
      ConsumerSurplus
      S
      S
      P1
      P
      P
      D
      D
      Q
      Q
      Q1
    • 5. Second Degree Price Discrimination
      S
      35
      30
      25
      D
      3
      1
      2
    • 6. InefficiencyTriangle
      Inefficiency Triangle
      MC
      ATC
      P
      ATC1
      MR
      D
      0
      Q
    • 7. X
      MC
      P
      ATC
      ATC1
      ATC2
      D = MR
      MR
      0
      Q
      Q c
    • 8. Third degree Price Discrimination
      MC
      AC
      P
      P
      P
      AR
      AR
      AR
      MR
      MR
      MR
      0
      0
      0
      Q a
      Q b
      Q
      Sub Market A
      Sub Market B
      TOTAL MARKET
    • 9. Cadbury and Big Bazaar
      over price Discrimination

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