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 earn zero profits.
1. Second degree price discrimination refers to charging different prices for different units of quantities demanded. A common example of Second degree price discrimination is the bulk discounts that we often find in grocery stores. While 1 kg of flour is charged at say $1 per kg, if an individual buys 5 kg flour then she is charged $0.50 per kg. Another example is electricity tariffs which increase with the quantity of electricity consumed. Households consuming say up to 25 units are charged at $5 per unit and beyond that the tariff is $10 per unit of electricity consumed.
Third degree price discrimination occurs when sellers set prices based on certain demographic characteristics. Students are charged less than working professionals, senior citizen are given certain discounts as compared to other buyers when buying air tickets. This is an example of third degree price discrimination, the main aim of which is to bring those who otherwise would not have been able to afford the goods in the consumer base. The student discounts we avail in many cases is a classic example of third degree price discrimination.
2. In monopolistic competition firms sell differentiated products thereby acting as monopolists but there is no barrier to entry or exit of firms. Thus, when existing firms earn super normal profits in a monopolistic competitive industry, new firms will enter the market and this will continue till all firms start earning only normal profit, that is zero profit, in the long run despite having market power.
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 pts Question 21 Which of the following is an example of third degree price discrimination? None of these are third degree price discrimination A baseball stadium offers discounts to senior citizens A cable provider offers a package so customers can get cable and high-speed internet with a single subscription A car salesman can charge each customer exactly what he or she is willing to pay for the cars at his dealership 1 pts Question 22 Which of the following...
15. Which of the following is a true statement about the difference between a price-taker firm and a competitive price-searcher firm in the long run (more than one answer is correct)? a. Both will sell their products at a price equal to average total cost, but only the price-searcher will produce at minimum average total cost. b. Both will sell their products at a price equal to marginal cost, and only the competitive price searcher will produce at minimum average...
Economic quizs, please help check my answers.
UNIVERSITY JON Question 1 Ia member of a cartel is the first to alert authorities to the cartel behavior, which of the following w occur to this member firm? Not yet answered Points out of 1.00 P er question 3 10 11 12 Select one: • A. The firm will not be penalized. B. The firm's most senior managers will face jail time. 5 16 17 18 C. The firm will face significant...
i will give a thumb up for sure if it helps me :) Please Summarize this article about Communicating competitive information,and Applying Game Theory To Managing Price Competition. Pricing Strategies Course -No longer than 400 words. Like any other type of market research, information about competitors will be most valuable if it is collected and stored in a systematic way. Activities such as shopping the competition should be done thoroughly and periodically. Information from different sources should be merged into...
CASE 6 Using Ex-Cons to Teach Business business school with a master's degree, worked as a Ethics at MCL devised a 56 million money launderin home and served two years in federal prison. AL After the Enron scandal and he was the way he became divorced and unemployed, and Tyon, and Adelphia debacles that wed a couple of to move back in with his parents. As Busw. We years later, the business ethics industry really started to reported, it was...
Read and Complete Case Study #2 –Managing
People.
The central components of your analysis should include issue
identification, issue analysis, solutions, and potential
limitations to your solutions. The case analyses serve to:
a) Provide an opportunity to apply the class concepts in the
solution of practical problems.
b) Provide you with a common task through which you can learn to be
more effective thinkers and problem-solves in your
organizations.
The written case analysis will be evaluated based on your
effectiveness...
Here is the text book information, trend needs to be
return on investment
Calculate one financial statement ratio trend within your industry that warrants improvement efforts. Make up your own. Return on Investment LO 2 Explain the importance and show the calculation of return on investment. Imagine that you are presented with two investment alternatives. Each investment will be made for one year, and each investment is equally risky. At the end of the year you will get your original...
Discussion questions
1. What is the link between internal marketing and service
quality in the airline industry?
2. What internal marketing programmes could British Airways
put into place to avoid further internal unrest? What potential is
there to extend auch programmes to external partners?
3. What challenges may BA face in implementing an internal
marketing programme to deliver value to its customers?
(1981)ǐn the context ofbank marketing ths theme has bon pururd by other, nashri oriented towards the identification of...
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...
A. Issues [1] In addition to damages for one year's notice period, can a trial judge award significant damages for the mere fact of an employee's dismissal, or for the stigma that that dismissal brings? Or for the employer thereafter competing with the ex-employee for the clients, before the ex-employee has got a new job? B. Basic Facts [2] This is an appeal from 2009 ABQB 591 (CanLII), 473 A.R. 254. [3] Usually a judgment recites facts before law. But...