Price discrimination isn't a purely monopoly topic. Firms in other industrial structures practice price discrimination as well, but this is as good a place as any to introduce the topic.

Price discrimination is exactly what it sounds like. Charging different customers different prices. Some forms of price discrimination are illegal others aren't. As we shall see, price discrimination is fairly common.

Some common examples of price discrimination include, but aren't limited to: Student and Senior Citizen discounts, lower airline fairs for travelers booking early and meeting certain restrictions, coupons, matinee prices at movies, different utility rates for business and residential customers.

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