Question

I have bolded the questions that I believe to be correct.

1. Which of the following is an example of price discrimination?

                a. ​Seniors paying a lower price for tickets at movie theatres     

                b. ​Students paying discounted rates on travel

                c. ​Tourists paying higher prices on local attractions than locals               

                d. ​All of the above

2. Amusement parks often offer discounts to locals with IDs. This is an example of

                a. ​A direct discrimination scheme   

                b. ​An indirect discrimination scheme             

                c. ​Diminishing marginal returns      

                d. ​Vertical integration        

3. When deciding what price to charge customers, a firm may choose to charge different prices based on customers’

                a. ​Age    

                b. ​Willingness to pay         

                c. ​Location          

                d. ​All of the above

4. Advance-purchase discounts offered by airlines are an example of​

                a. ​Direct price discrimination           

                b. ​Indirect price discrimination        

                c. ​All of the above             

                d. ​None of the above

5. Consumers demand different features from cough medications taken for daytime use versus nighttime use. Drug companies conveniently package both medications together. This strategy is designed to

                a. ​Allow consumers to buy the two together

                b. ​Stop consumers from buying each medicine separately         

c. ​Make the consumers more homogenous so that maximum consumer surplus can be extracted with a single price    

                d. ​None of the above         

6. Price discrimination is

                a. ​The practice of charging different prices to different individual buyers or customer groups          

                b. ​The practice of differentiating the product to make demand less elastic             

                c. ​The practice of deciding a single price to be charged to customers     

                d. ​Always illegal

7. For a firm to maximize total profits through price discrimination, it should

a. ​Charge a high price to consumers with an inelastic demand and low price to consumers with an elastic demand     

b. ​Charge a low price to consumers with an inelastic demand and high price to consumers with an elastic demand    

                c. ​Charge the same price to both sets of consumers    

                d. ​Charge nothing to both set of consumers-throw a party

8. Charging prices closer to what consumers are willing to pay for a good

                a. ​Reduces consumers surplus          

                b. ​Increases producer surplus           

                c. ​Both a and b    

                d. ​None of the above         

9. Advance-purchase discounts offered by airlines are an example of​

                a. ​Direct price discrimination           

                b. ​Indirect price discrimination        

                c. ​All of the above             

                d. ​None of the above

10. The “damaged goods” strategy refers to ​

                a. ​Trying to sell damaged goods to your customers     

                b. ​Damaging the goods after they have been paid for but before the shipping        

                c. ​Incurring additional costs to make the cheaper goods unattractive to high-value users    

                d. ​Incurring additional costs to make the more expensive goods better quality     

Answer 1

Aus; (d) All 0 & l. discrimination. of these are examples of price & Ans: (a) u an example of the direct price the ciscount to local discrimination. 3 Ans. (d) all of these are used & And! (A) to practise price discrimination,