So, why do firms practice third-degree price discrimination? a) firms get pressure to offer lower prices to some consumer types- like children or senior citizens. b) Firms can earn greater profits practicing third-degree price discrimination compared to charging a single price per ticket.    I need help figuring out if the answer is a or b.

Q: Which of the following is an example of second-degree price discrimination? an airline company that…

A: Price discrimination refers to the practice of charging different prices to different consumers.

Q: So, why do firms practice second degree price discrimination? Why not charge a set price for each…

A: Price discrimination refers to the process of charging different price for the same good in…

Q: What are the three requirements for price discrimination to exist? What is the general paradox…

A: Price Discrimination When similar products and services are offered at different prices by the same…

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A: Sellers or distributors do have a practice of selling  identical or similar products at different…

Q: One example of price discrimination is when movie is newly released the ticket price for movie…

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Q: Marcella owns a sandwich shop. She decides to charge different prices to groups of customers. She…

A: The lower the elasticity of demand, the higher would be the final price paid by customer

Q: a. What conditions must hold true for a firm to price discriminate? b. How and why might barber…

A: In a perfectly competitive market, sellers are price takers. All the sellers charge the same price…

Q: What are the key conditions that must be present for a firm to successfully price discriminate? What…

A: When goods of the same amount and quality are sold to various customers at various rates, this…

Q: Suppose you can separate consumers into two groups: Group 1 has a price elasticity of demand = -3…

A: Price elasticity of demand refers to the ratio between the percentage change in quantity demanded to…

Q: You and your friend who just graduated visit a local ice cream parlor. By showing your student id…

A: There are two students, among which one is showing her id card and getting the discount of 1$ on ice…

Q: In terms of reality, could you show that it is easier for a firm to practice second-degree price…

A: Monopoly refers to the market situation in which there is only one seller in the market and large…

Q: . When you go to your dentist, she charges you the full price for your clean and shine but the…

A: Price discrimination is the practice of charging certain groups of customers different rates for the…

Q: Which of the following statements about price discrimination is FALSE? Question 17Answer a.…

A: The objective of the question is to identify the false statement among the given options related to…

Q: s this a form of price discrimination? Why? Include in your analysis differing levels of elasticity,…

A: Price discrimination is a marketing tactic in which a seller sets different pricing for the same…

Q: The practice of posting a discrete schedule of declining prices for different ranges of quantities.…

A: Price discrimination is adopted by most monopolists to maximize their profit margin. As the…

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A: Price discrimination is a selling technique that charges clients various price for a similar item or…

Price Discrimination

Price discrimination or differential pricing is based on the principle that the seller will charge the buyer a price based on the buyer’s ability and willingness to pay for the product rather than applying uniform pricing for all.