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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1252 |
Essay's paper body
Another way is to offer individuals a choice between a monthly contract and a pay-as-you-go one. The first comprises a high fixed cost and a low marginal cost, while for the second the opposite is true: no fixed costs, but high marginal costs.
The third degree price discrimination means charging different prices on different segments of the market...
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One possibility is to segment the market into individual and institutional consumers: different deals are offered to firms, as opposed to individual users. Another example is offering “student dealsâ€: students are consumers without an income, so they are less willing to pay the standard price. That’s why the mobile phones operators rolled out student deals, based on a lower average tariff...
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General points of the essay
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