Question

Apple Music is a music streaming service provided by Apple that aims to compete with Spotify. It charges $11.99 per month for a single user subscription, or $17.99 for a family package that can be used by up to 6 people.

Select the item from the list provided to make the following statements true.

-       1.       2.       3.       4.       5.       6.       7.       8.       9.       10.       11.       12.    Apple Music is employing __________ in offering a family package.       -       1.       2.       3.       4.       5.       6.       7.       8.       9.       10.       11.       12.    If raising its prices will never lead to greater profits for Apple Music, this would indicate that it has been forced to adopted a ________ strategy       -       1.       2.       3.       4.       5.       6.       7.       8.       9.       10.       11.       12.    If Jack purchases a family package, then sells access to Apple Music to Jill, he is engaging in __________.

1. First degree price discrimination 2. Second degree price discrimination 3. Third degree price discrimination 4. Peak load pricing 5. Pricing power 6. Arbitrage 7. Inefficient 8. Collusion 9. Dominant 10. Dominated 11. Prisoner's dilemma 12. Efficient

Answer 1

Q1. 2. As it prices differently for family(bulk) and individual user

Q2. 9. As is produces best payoff irrespective of strategies adopted by other players

Q3. 6. It is the practice of taking price advantage for the same good