Price discrimination occurs whenever firms charge different prices to different customers where these price differences are...
Price discrimination occurs whenever firms charge different prices to different customers where these price differences are not a reflection of costs differences. Why do some companies (firms) price discriminate? What are the conditions for price discrimination to occur? What are some real world examples of price discrimination?
Homework Answers
Price discrimination increases the profit for firms that face different consumer groups based on their elasticity of demand. Charging a single price generate significant profits but they can be increased when different consumers are charged differently according to their willingness to pay
The required conditions for price discrimination include prevention of resale between different markets, existence of market power with the firm, presence of different consumer groups in different market segments according to the elasticity of demand, and the ability to segregate the market into these segments
Price discrimination is visible in every market. Pharmaceutical drugs are provided to elderlies at a discounted rate and at a higher rate to non elderly. Theatre provides discounted tickets for morning shows.
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Price discrimination occurs whenever firms charge different
prices to different customers where these price differences are...
DESCRIPTIVE EXAMPLES: Price discrimination occurs whenever firms charge different prices to different customers where these price...
DESCRIPTIVE EXAMPLES: Price discrimination occurs whenever firms charge different prices to different customers where these price differences are not a reflection of costs differences. Why do some companies (firms) price discriminate? à What are the conditions for price discrimination to occur? à and what are some real-world examples of price discrimination?
Why do marketers charge customers different prices for the same product or service? Explain how this...
Why
do marketers charge customers different prices for the same product
or service? Explain how this type of pricing is implemented and the
conditions under which it is effective.
1. Why do marketers charge customers different prices for the same product or service Explain how this type of pricing is implemented and the conditions under which it is effective. 10. Having earned a bonus at his work, Rick placed the money in an investment earning 4.18% compounded monthly. He withdrew...
Help with 8&9 please. 8. Price Discrimination refers to: A. Selling a product for different prices...
Help with 8&9 please.
8. Price Discrimination refers to: A. Selling a product for different prices at two different points in time. B. Any price above that which is equal to a minimum average total cost. C. Selling a product at different prices to different customers based on their willingness and ability to pay D. The difference between the prices a purely competitive seller and a purely monopolistic seller charge. 9. Refer to the following diagram for a pure monopoly:...
What of the following statements is not true about group price discrimination? Group of answer choices...
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...
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...
Explain the key differences in outcomes between markets consisting of price-setting firms and markets consisting of...
Explain the key differences in outcomes between markets consisting of price-setting firms and markets consisting of price-taking firms. Select a specific real-world firm or market that we have not discussed in class or the online text and discuss what which model of market structure you think would be most appropriate to describe that market. Real world markets never exactly meet the assumptions of the models, so you can also talk about what aspects of the real-world market may not fit...
Explain the key differences in outcomes between markets consisting of price-setting firms and markets consisting of...
Explain the key differences in outcomes between markets consisting of price-setting firms and markets consisting of price-taking firms. Select a specific real-world firm or market that we have not discussed in class or the online text and discuss what which model of market structure you think would be most appropriate to describe that market. Real world markets never exactly meet the assumptions of the models, so you can also talk about what aspects of the real-world market may not fit...
Explain the key differences in outcomes between markets consisting of price-setting firms and markets consisting of...
Explain the key differences in outcomes between markets consisting of price-setting firms and markets consisting of price-taking firms. Select a specific real-world firm or market that we have not discussed in class or the online text and discuss what which model of market structure you think would be most appropriate to describe that market. Real world markets never exactly meet the assumptions of the models, so you can also talk about what aspects of the real-world market may not fit...
36) When a monopolist sells the same product at different prices and the prices are not related to cost differences, we have B) price differentiation. D) monopoly pricing A) price discrimination...
36) When a monopolist sells the same product at different prices and the prices are not related to cost differences, we have B) price differentiation. D) monopoly pricing A) price discrimination C) marginal cost pricing. 37) 37) Monopolies misallocate resources because A) price does not equal marginal cost B) profits are usually positive. C) marginal cost does not equal average total cost. D) price does not equal average total cost. 38) 38) Which of the following assumptions is true about...
a. First-degree price discrimination involves a firm charging different prices: based on the firm's ability to segm...
a. First-degree price discrimination involves a firm charging different prices: based on the firm's ability to segment the market into two or more groups to each customer based on race, religion, or other individual characteristic based on the quantity of a good or service purchased. to each customer based on his or her willingness and ability to pay. b. Which of the following purchases is an example of first-degree price discrimination? A big-box store offering a discount for people who...
Why
do marketers charge customers different prices for the same product
or service? Explain how this type of pricing is implemented and the
conditions under which it is effective.
1. Why do marketers charge customers different prices for the same product or service Explain how this type of pricing is implemented and the conditions under which it is effective. 10. Having earned a bonus at his work, Rick placed the money in an investment earning 4.18% compounded monthly. He withdrew...
Help with 8&9 please.
8. Price Discrimination refers to: A. Selling a product for different prices at two different points in time. B. Any price above that which is equal to a minimum average total cost. C. Selling a product at different prices to different customers based on their willingness and ability to pay D. The difference between the prices a purely competitive seller and a purely monopolistic seller charge. 9. Refer to the following diagram for a pure monopoly:...
36) When a monopolist sells the same product at different prices and the prices are not related to cost differences, we have B) price differentiation. D) monopoly pricing A) price discrimination C) marginal cost pricing. 37) 37) Monopolies misallocate resources because A) price does not equal marginal cost B) profits are usually positive. C) marginal cost does not equal average total cost. D) price does not equal average total cost. 38) 38) Which of the following assumptions is true about...
a. First-degree price discrimination involves a firm charging different prices: based on the firm's ability to segment the market into two or more groups to each customer based on race, religion, or other individual characteristic based on the quantity of a good or service purchased. to each customer based on his or her willingness and ability to pay. b. Which of the following purchases is an example of first-degree price discrimination? A big-box store offering a discount for people who...
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