Difference between price discrimination and dumping?

Answer 1

price discrimination is to rip highest possible profit out of consumers.

there are three different price discrimination,

first degree - where firm charges highest possible price each individual is willing to pay; in this case, consumer surplus is zero

second degree - where firm charges different price for different quantity of good; in this case, firm rips off some of consumer surplus

third degree - in this case, firm separates good into two or more different market as demand for one group of consumer is higher, or more elastic etc, than the other group of consumers.

in order to exercise price discrimination, firm must have significant market power (to set prices) and is able to prevent re-selling, and also need to able to identify different consumers/group of consumers demand for the good.

while dumping occurs when foreign firm trying to increase market share/eliminate domestic firms out by setting lowest price where no domestic firm will be willing to supply, hence all of the quantity will be supplied by the foreign firm. in such case, firm may initially experience losses, but in long run, it will drive other firms out of the market, hence will be a monopoly and will rip profit out of consumers.