QUESTION 5 Direct price discrimination may not work if customers view the scheme as unfair
True
False
5. Direct price discrimination is more common method of price discrimination. It is the method of setting different prices for different groups of consumers. For example discounts are allowed to students, senior citizens, the customers residing in a particular locality. The methods are easily identifiable by the customers. For each groups the seller estimates the total demand and fix a price which maximize total revenue. As this method is easily identifiable by the customers, this method will not work if the customers feel that this method is unfair.
Answer: True.
QUESTION 5 Direct price discrimination may not work if customers view the scheme as unfair True...
QUESTION 1 Which of the following conditions is NOT required for successful direct price discrimination? A. The seller must be able to prevent arbitrage between low-value and high-value buyers B. The seller should charge higher prices to high-value buyers C. The seller must offer different products for high-value and low-value groups of consumers D. The seller must be able to identify customers as high-value or low-value buyers QUESTION 2 Under a version of direct price discrimination, the seller is able...
which of the following statements about price discrimination is true? a. most forms of price discrimination are illegal in the United States. b. price discrimination may be beneficial to some consumers. c. perfectly competitive firms are the most likely to engage in price discrimination. d. price discrimination results in lower profits for the producer.
true or false A monopolist that can practice price discrimination will have a larger producer surplus than a monopolist that cannot practice price discrimination.
5) Price discrimination requires the ability to sort customers and the ability to prevent consumers consumers from accumulating a surplus. Explain how the following can function as price discrimination: w the following can functioniay Requiring airlines travelers to spend at least one Saturday night away from home to qualify for a low fare Publishing coupons in the newspaper or online Charging high-income patients more than low-income patients for plastic surgery. a. b. c.
QUESTION 5: THIRD DEGREE PRICE DISCRIMINATION (20pt) A monopolist engages in third degree price discrimination.There are 2 types of consumers, and the monopolist wants to sell to both groups. The monopolist is allowed to charge different prices and hence engages in third degree price discrimination. The demand curve for each group (the entire group) is as follows 01 500 10P Q2 200-5P2 The total cost function is TC 2000+10Q (a) What price does this firm charge to each group? (b)...
The direct method separately lists operating cash receipts, such as cash received from customers. True or False True False
Which of the following is true of price discrimination? a. It involves charging whatever the market will bear. b. In a competitive market, prices may have to be higher than in a market where the firm has a monopoly. c. It makes economic sense to charge the same prices in different countries. d. It exists whenever consumers in different countries are charged the same price for the same product, irrespective of variations. e. It cannot help a company maximize its...
D Question 5 2 pts manufacturing overhead is a direct cost True False D Question 6 2 pts total fixed manufacturing overhead remains constant within the relevant range True False
Cash received from customers may result in a current liability True O False
What of the following statements is not true about group price discrimination? Group of answer choices it is less difficult to charge different prices to different consumers if a good is an individually provided service, such as haircuts the group of consumers with more elastic demand (as a given price) will be charged a higher price in theory the good considered must be the same, but in the real world a price discriminating monopolist may need to change the good...