Please Answer these questions:

1. Why do some firms practice price discrimination? Why do other firms practice price non-discrimination? Explain your answers.
2. Describe the differences between price non-discrimination and

(i) first degree price discrimination,

(ii) second degree price discrimination,

(iii) third degree price discrimination,

and (iv) peak load pricing.

Provide a supporting example in each of these four cases. Note the market structure conditions in which each can apply, and explain the expected welfare outcomes in each case.