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When is price discrimination profitable? Why?

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Price discrimination is profitable when at the single monopoly price, price elasticity of demand in one market is different from price elasticity of demand in the other. Only when price elasticities in the two markets at a single monopoly price are different, marginal revenue in one market will be greater than in the other and as a result it will pay the seller to shift some units from one market to the other and charge different prices in the two markets to increase profit.

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