2. Location. In some cases the price of a product may be higher in one location than another because of a higher transportation or other cost. This is not price discrimination. However, when the price in one location is higher than is justified by a difference in marginal cost, because of demand being less elastic, then this does involve discrimination. It should also be mentioned that sometimes a kind of reverse price discrimination occurs. Instead of charging different prices when marginal cost is the same, some firms will charge the same price even when marginal costs are different. This occurs, for example, when there are differences in transportation costs between different markets, but a universal price is charged. Again this could be justified by differences in demand elasticities between different markets, if demand is more elastic in those areas with higher transportation costs.