Consider the following actions undertaken by a firm: a. charging a higher price for products of higher quality b. charging different prices to different consumers for the same product when the variation cannot be explained by cost differences c. charging different prices for products of different qualities d. charging a lower price to match a competitor's price Which of the above will be considered price discrimination? A. a, b, c, and d B. b and d only C. a, b, and d only D. b only

Consider the following actions undertaken by a firm: a. charging a higher price for products of higher quality b. charging different prices to different consumers for the same product when the variation cannot be explained by cost differences c. charging different prices for products of different qualities d. charging a lower price to match a competitor's price Which of the above will be considered price discrimination? A. a, b, c, and d B. b and d only C. a, b, and d only D. b only

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter9: Monopoly

Section: Chapter Questions

Problem 13QFR

See similar textbooks

Similar questions

Which of the following is necessary for a firm to practice price discrimination? Group of answer choices a. The firm is a member of a cartel. b. The demand curve for the product is perfectly inelastic. c. The firm can prevent resale of its goods. d. The government strictly enforces antitrust laws. e. The demand curve for the product is perfectly elastic.
What is "third-degree price discrimination" and how is it applied in markets? A) Charging different prices based on the quantity purchased. B) Charging different prices to different consumer groups based on their elasticities of demand. C) Charging a uniform price to all consumers regardless of their willingness to pay. D) Offering discounts to consumers who purchase bundles of goods.
ssume there is no price discrimination: Matthew, Rachel, Janice, and Mandy own the only ice company in town (they have a monopoly on the ice market). Matthew wants to sell as much ice as possible without losing money. Rachel wants the ice company to bring in as much revenue as possible. Janice wants to maximize total surplus and Many wants to make the largest possible profit. Use ONE clearly-labelled graph of the ice company’s marginal revenue, demand, and cost curves to show the price and quantity (i.e., ice) each person desires. Provide explanation.
Question 6 of 18 BlueSky Airlines would like to price discriminate between their vacation and business travelers. Move the points on the rectangle to the area representing the maximized profits BlueSky earns from vacation travelers. Vacation travelers 600 550 Profits 500 450 400 350 300 250 200 150 Marginal cost = average cost 100 50 Vacation traveler demand MR 100 200 300 400 500 600 700 800 900 1,000 Quantity of trips Vacation traveler price per trip ($)
Define and give a few examples: Pricing Tactics Price Discriminations Pricing Sturcture
1. Two companies, Klaren Electronics, a monopoly, and the Yarn Barn, a perfectly competitive firm, are interested in increasing their profits by using price discrimination. What is price discrimination? Will it help each company to accomplish their goal? Why or why not?
hey how are you a)Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output that maximizes profit. At that level of output, show on your graph the firm’s total revenue and total cost. b)Draw the demand curve, marginal revenue curve, average total cost curve, and marginal-cost curve for a monopolist. Show the profit-maximizing level of output, the profit-maximizing price, and the amount of profit. c)Why the demand curve for a firm operating in monopolistic competition is more elastic compared to the firm operating as a monopoly.
Question :- A monopolist faces an inverse demand curve given by P= 800 - 2Q and a cost curve given by C(Q)= 40Q + 3Q2. If this firm practices 1st degree price discrimination, it will earn _______ in surplus. Select one: a. $36,100 b. None of these. c. $28,880 d. $0
From the following graph, show the equilibriums under each scenario. Market is in equilibrium at A under competitive market. (a) Show the equilibrium under monopoly. Call this point B (b) When the demand increased in the area due to immigration, show the new competitive equilibrium, call this point C. (c) Show the new monopolistic equilibrium with increased demand and call this point D.
a. b. If a firm's the price elasticity of demand (Eg) to be-3.5 and marginal cost (MC) is $15. Using the mark-up rule, what is the optimal price for the firm to charge? If the price elasticity of demand (En) changes to -3.0, and MC is still $15. Use the mark-up rule to find the new optimal price for the firm to charge? What is the defining feature of a Pure Selling Problem and what impact does it have one the firm's goal to maximize profit?
If a firm engages in perfect price discrimination, it charges a. different prices to customers based on how many units of output they buy b. each customer the highest price the customer is willing to pay c. different prices to customers based on how old they are d. each customer the average cost of the product e. each customer the lowest price the customer is willing to pay
(a) Does a monopolistically competitive firm have an incentive to produce at the level of output that minimizes the average total cost at the long run equilibrium? Explain with a diagram. (b) Suppose CLP Holdings Limited is a natural monopolist with constant marginal cost. Draw a diagram to indicate the profit-maximizing level of output, the profit-maximizing price, and the size of the profit. If the government wants to increase the market efficiency through price regulation, would you suggest the government setting the price equal to the firm’s marginal cost or its average total cost? Explain in detail with the diagram in part (i).