Cereal manufacturers' use of coupons can be partially explained by: a. first-degree price discrimination. b. second-degree...
Cereal manufacturers' use of coupons can be partially explained by:
a. first-degree price discrimination.
b. second-degree price discrimination.
c. third-degree price discrimination.
d. markup pricing.
e. tying.
Homework Answers
Answer
The correct answer is (c) third-degree price discrimination.
In Third degree price discrimination, manufacturer or firm charges different prices to different market segment. Here Manufacturer segmented the market, one with coupons and other with no coupons and hence charges different prices to different segments.
Hence, the correct answer is (c) third-degree price discrimination.
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Cereal manufacturers' use of coupons can be partially explained
by:
a. first-degree price discrimination.
b. second-degree...
Describe the different price strategies. Discuss when a firm would employ first, second, or third-degree price...
Describe the different price strategies. Discuss when a firm would employ first, second, or third-degree price discrimination. Provide an example of a first degree, second degree, third degree, and an advanced pricing strategy. Also talk about the pros and cons to different pricing strategies (for example complex, hard to implement, amount of producer surplus generated). PLEASE BE DETAILED AND PROVIDE CLEAR EXAMPLES. THANK YOU!
Electric utilities often practice second-degree price discrimination. Why might this improve consumer welfare? Second-degree price discrimination...
Electric utilities often practice second-degree price discrimination. Why might this improve consumer welfare? Second-degree price discrimination might improve consumer welfare because, compared with single-monopoly pricing, A.profit is higher. B.output is higher. C.producer surplus is lower. D.prices are lower. E.variety is greater.
Which of the following is not an example of third-degree price discrimination? A.Discounted movie tickets for...
Which of the following is not an example of third-degree price discrimination? A.Discounted movie tickets for senior citizens. B.Manufacturer's coupons. C.Higher fares for business travellers. D.Reservation pricing for each consumer. E.Lower prices for students.
When the NCAA basketball tournament will only sell tickets to all three games held at a...
When the NCAA basketball tournament will only sell tickets to all three games held at a given site as a package, it is practicing: a. bundling. b. first-degree price discrimination. c. second-degree price discrimination. d. markup pricing. e. third-degree price discrimination.
Compare and list a firm'a informational needs for first, second and third degree price discrimination. Note:...
Compare and list a firm'a informational needs for first, second and third degree price discrimination. Note: Don't give definitions of them. Just compare and list informational needs.
Question 3 a) In the Sunday newspaper, there are usually coupons that you can clip and...
Question 3 a) In the Sunday newspaper, there are usually coupons that you can clip and take to the store to save money on products. Anyone can buy a newspaper, and the value of the coupons easily exceeds the price of the newspaper for most consumers. Is this an example of price discrimination? Explain. (5 marks) b) Differentiate between second degree and third degree price discrimination. Support (7 marks) your answer with suitable examples. c) George's Pants Store sells a...
1. Give an example of a good or service that is commonly sold using second-degree price discrimination, and one that is commonly sold using third-degree price discrimination, besides the ones mentione...
1. Give an example of a good or service that is commonly sold using second-degree price discrimination, and one that is commonly sold using third-degree price discrimination, besides the ones mentioned in the lecture and textbook. Be sure to provide enough information about how these goods are sold to make it clear that they are valid examples. 2. Using at least one graph, explain how it is possible that firms in a monopolistically competitive industry can have monopoly power, yet...
a) Compare a firm's informational needs to engage in 1st, 2nd and 3rd degree price discrimination. b) In second degree...
a) Compare a firm's informational needs to engage in 1st, 2nd and 3rd degree price discrimination. b) In second degree price discrimination, supposr who benefirs frım the presence of other group, high demand consumers or low demand consumers? Explain.
3. A monopolist is able to practice third-degree price discrimination between two markets. The demand function...
3. A monopolist is able to practice third-degree price discrimination between two markets. The demand function in the first market is q = 500 - 2p and the demand function in the second market is q = 1,500 - 6p. To maximize his profits assuming constant marginal cost, he should a. charge a higher price in the second market than in the first. b. charge a higher price in the first market than in the second. c. charge the same...
4. a) Discuss a firm's informational needs to engage in 3"d, and 2nd degree price discrimination....
4. a) Discuss a firm's informational needs to engage in 3"d, and 2nd degree price discrimination. In third degree price discrimination what is the relationship between price set for a specific group and price elasticity of demand for that group? b) In second price discrimination, suppose who benefits from the presence of the other group, high demand consumers or low demand consumers? Explain
Question 3 a) In the Sunday newspaper, there are usually coupons that you can clip and take to the store to save money on products. Anyone can buy a newspaper, and the value of the coupons easily exceeds the price of the newspaper for most consumers. Is this an example of price discrimination? Explain. (5 marks) b) Differentiate between second degree and third degree price discrimination. Support (7 marks) your answer with suitable examples. c) George's Pants Store sells a...
4. a) Discuss a firm's informational needs to engage in 3"d, and 2nd degree price discrimination. In third degree price discrimination what is the relationship between price set for a specific group and price elasticity of demand for that group? b) In second price discrimination, suppose who benefits from the presence of the other group, high demand consumers or low demand consumers? Explain
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