Homework Answers
Here the price discrimination is possible, the price discrimination is the process of setting different prices to the different customers for the same product. There are mainly three degrees of price discrimination, if the seller sets the price to the maximum willingness to pay for the commodity that is called the first degree price discrimination. If the seller divides the customers into different groups and sets different price for each group and this is the third degree price discrimination.
Ans: Both 2 and 3 are true.
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Josh operates a funeral service business. He is able to sell coffins to his clients. In...
service business. He is 1. price discrimination is not possible 2 price discrimination is possible because...
service business. He is 1. price discrimination is not possible 2 price discrimination is possible because Josh can discover a client's willingness to pay. 3 price discrimination is possible as Josh could sell the same coffin to different groups of customers at different prices. Which of the above statements are true: Only 1 is true. Only 2 is true Both 1 and 2 are true. Both 2 and 3 are true. All three are true.
QUESTION 1 Which of the following conditions is NOT required for successful direct price discrimination? A....
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...
A fast-food restaurant has identified three primary groups willing to purchase its meals. However, customers are...
A fast-food restaurant has identified three primary groups willing to purchase its meals. However, customers are willing to purchase only one meal each. The table shows the total number of meals bought at three different prices. The number of consumers is the total number of buyers at each price level. Group Number of consumers Willingness to pay High 350 $5.50 Medium 500 $4 Low 750 $2 The restaurant can produce a meal with no fixed costs and a constant marginal...
There are two groups of customers in the market. Demand of group number 1 is Q1(p) = 3−0.5p, and demand of group number...
There are two groups of customers in the market. Demand of group number 1 is Q1(p) = 3−0.5p, and demand of group number 2 is Q2(p) = 5−2p. The market is served by a monopolist with MC = 1. (a) Write down the market demand function (remember that demand function should be welldefined for all possible prices). Plot it. (b) Derive the MR(Q) for the market demand and plot it on the graph from above. (c) What price will the...
a) Suppose that Netflix switches to offering a separate service for TV shows and a separate...
a) Suppose that Netflix switches to offering a separate service
for TV shows and a separate service for movies. Netflix charges its
??? TV customers price ??? and its ?? movie customers ??. Demand
for the products are inter-related. Specifically:
??? = 14 − 2??? − ??
And: ?? = 19 − 3?? − 2???
And the cost function is: ? = 10 + 4(?? + ???)
Identify the optimal quantities (?? and ???) for Netflix.
b) Now let’s contrast...
Service personnel who fall short of operating at the maximum end of the discretionary effort scale...
Service personnel who fall short of operating at the maximum end of the discretionary effort scale run the risk of being viewed as ______________ when they are ___________ to discharge their responsibilities but are ______________ to do so. 1. incompetent, unwilling, unable 2. malcontents, unwilling, able 3. malcontents, willing, able 4. malcontents, willing, unable 5. incompetent, unwilling, able Price bundling should be considered when 1. service organizations with multiple products want to cross-sell their service offerings. 2. Price bundling is...
Statement 1: In oligopoly markets, the firms do NOT produce at the lowest possible cost (i.e.,...
Statement 1: In oligopoly markets, the firms do NOT produce at the lowest possible cost (i.e., lowest point on the average total cost (ATC) curve). Statement 2: Social surplus is NOT maximized in oligopoly markets. Statement (1) is true; statement (2) is false. Both statements (1) and (2) are tru. Both statements (1) and (2) are false. Statement (1) is false; statement (2) is true. Which of the following is the set of laws (legislation) that prohibits the formation of...
2.- You are a monopolist with 15 potential buyers for the two video games you sell,...
2.- You are a monopolist with 15 potential buyers for the two video games you sell, VG1 and VG2. You can produce each of these games at constant marginal cost of $1. There are 3 different types of clients: type A (3 of them), type B (5 of them) and type C (7 of them). The types' willingness to pay for each of the games is given in the following table (each client would buy at most one unit of...
1)When there are lower prices, but waiting lines customers will often be drawn to the competing...
1)When there are lower prices, but waiting lines customers will often be drawn to the competing location of a Monopolistic Competitor with greater customer service and better atmosphere. true or false? 2) According to the table above, this firm would most likely set price at the quantity where______________. a. MR = ATC b. MR = P c. MR = MC d. None of the above 3) Many firms exercise ____________________ such as when different prices are charged by telephone companies...
ID: A 9. When a monopolist is able to sell its product at different prices, it...
ID: A 9. When a monopolist is able to sell its product at different prices, it is engaging in a quality adjusted pricing. b. price differentiation. c. price discrimination. d. distribution pricing. 10. A natural monopoly occurs when a. the product is sold in its natural state (such as water or diamonds). b. there are economies of scale over the relevant range of output. c. the firm is characterized by a rising marginal cost curve. d. production requires the use...
service business. He is 1. price discrimination is not possible 2 price discrimination is possible because Josh can discover a client's willingness to pay. 3 price discrimination is possible as Josh could sell the same coffin to different groups of customers at different prices. Which of the above statements are true: Only 1 is true. Only 2 is true Both 1 and 2 are true. Both 2 and 3 are true. All three are true.
a) Suppose that Netflix switches to offering a separate service
for TV shows and a separate service for movies. Netflix charges its
??? TV customers price ??? and its ?? movie customers ??. Demand
for the products are inter-related. Specifically:
??? = 14 − 2??? − ??
And: ?? = 19 − 3?? − 2???
And the cost function is: ? = 10 + 4(?? + ???)
Identify the optimal quantities (?? and ???) for Netflix.
b) Now let’s contrast...
Statement 1: In oligopoly markets, the firms do NOT produce at the lowest possible cost (i.e., lowest point on the average total cost (ATC) curve). Statement 2: Social surplus is NOT maximized in oligopoly markets. Statement (1) is true; statement (2) is false. Both statements (1) and (2) are tru. Both statements (1) and (2) are false. Statement (1) is false; statement (2) is true. Which of the following is the set of laws (legislation) that prohibits the formation of...
2.- You are a monopolist with 15 potential buyers for the two video games you sell, VG1 and VG2. You can produce each of these games at constant marginal cost of $1. There are 3 different types of clients: type A (3 of them), type B (5 of them) and type C (7 of them). The types' willingness to pay for each of the games is given in the following table (each client would buy at most one unit of...
ID: A 9. When a monopolist is able to sell its product at different prices, it is engaging in a quality adjusted pricing. b. price differentiation. c. price discrimination. d. distribution pricing. 10. A natural monopoly occurs when a. the product is sold in its natural state (such as water or diamonds). b. there are economies of scale over the relevant range of output. c. the firm is characterized by a rising marginal cost curve. d. production requires the use...
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