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Pigs Price Discrimination Examples

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In this essay I am going use the terms of price discrimination and perfect price discrimination and how we use them as an advantage when selling our show pigs. When you sell anything the objective is to make a big enough profit to cover all the costs that were required in making the project. In this case we make a profit to cover the costs of breeding, vaccinating, feeding, and getting them ready in a way so that they look good when it is time to sell them. All those costs can add up quickly especially when you are planning on raising two hundred pigs. The main reason we use price discrimination to increase all our profits.
The first term we will use is price discrimination. Price discrimination is selling the same product at different prices …show more content…

Just because we think that they are the best pigs doesn’t mean they really are and evey buyers wants something different. The buyers then get to pick the pigs, which we already have a value to that they are un aware of. If we think that that customer deserves that pigs for the price we have picked then they can have it, but if we think we need more because of who the buyer is then we will make it more. We want to find the right price to sell the pigs at because each pig is different, some better than others and every buyer is different. One buyer could come and get three pigs for two hundred dollars and the next buyer could come and get three and have to pay two hundred fifty or two seventy five. It really all depends on what he wants to sell them for.
Another term we will use is perfect price discrimination, which is each customer is charged his or her maximum willingness to pay. In this case when a buyer wants to buy one of the best pigs we have, but there willingness to pay is only two hundred seventy five dollars and we want to sell the best ones for about three hundred fifty dollars. They aren’t going to be able to get that one they will have to get one from the next pen down. They have to deal with that because that was their maximum willingness to pay. We aren’t going to come down in prices because then we aren’t using price

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