1)Some business owners or service providers offer lower prices to lower income individuals. These sliding fees are often explained as a charitable gesture. How could the sliding fees also be a profit-maximizing strategy?
1)Some business owners or service providers offer lower prices to lower income individuals. These sliding fees are often explained as a charitable gesture. How could the sliding fees also be a profit-maximizing strategy?
Chapter4: Supply And Demand: An Initial Look
Section: Chapter Questions
Problem 1DQ
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Hello, please answer the questions below. Thanks!
1)Some business owners or service providers offer lower prices to lower income individuals. These sliding fees are often explained as a charitable gesture. How could the sliding fees also be a profit-maximizing strategy?
2)And how does the type of pricing in part (a) make consumers better off?
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