The following present different examples of price discrimination strategies. Match up the examples with the appropriate type of pricediscrimination.A university athletic department requires a donation priorto purchasing season tickets.A. Third-degree price discriminationA firm identifies different groups of customers in themarket and offers different prices to each group.B. First-degree price discriminationA firm identifies and charges a unique price for eachconsumer in the market.C. Two-part tariff.D. Second-degree price discriminationA firm bundles together different products into packageswith special prices.

First price discrimination: In this, the seller knows the maximum price customer is willing to pay.…

Answered: The following present different…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The graph above is for the market for broadband home internet. Currently the internet service providers are charging the monthly subscription price of $50. Calculate the total revenue at this price level. 5,000 $4,500 $2,500 $9,000
Define price discrimination. Give two examples of price discrimination. How does perfect price discrimination affect consumer surplus, producer surplus and total surplus?
Suppose the accompanying table contains data on how many Veggie Delite sandwiches Subway is willing to sell each day at two different prices. Calculate the daily price elasticity of supply when the price increases from $5.00 to $7.50. Please round to the nearest hundredth. Price(per sandwich) Quantity supplied(sandwiches per day) $5.00 200,000 $7.50 210,000 a. Daily price elasticity of supply for Veggie Delite sandwiches = b. The daily price elasticity of supply for Veggie Delite sandwiches is relatively Elastic or Inelastic Now consider how responsive Subway’s supply of Veggie Delite sandwiches is to changes in price on an annual basis instead of a daily basis. c. Compared to the daily value, the annual price elasticity of supply for Veggie Delite sandwiches is likely to be more Inelastic or Elastic and the annual supply curve is likely Flatter or Steeper to be than the daily supply curve.
Imagine you are the owner of the Omaha Surfboard Company. You have a branch in Omaha and in Long Beach CA. After some market research you find the following surfboard demand for each market, Omaha Demand: Qo = 1000 – 10P Long Beach Demand: QL = 1000 – 5P Combined/Total Demand: Q = 2000 – 15P Your marginal cost is constant at $40. a. Find your price and quantity if you treated the market as a single entity with a single price. What is your profit? (Hint: find Marginal Revenue and set equal to MC) b. If you treat each market separately, what is P and Quantity in each market, and final profit?
Q4
Which of the following statements about price discrimination are true? Choose one or more: A. One example of price discrimination is Subway charging more for its footlong subs than for its 6-inch subs. B. One example of price discrimination is a movie theater charging a lower price for a 2:00 PM movie than it charges for the same movie at 8:00 PM. C. One example of price discrimination is a restaurant that provides a "senior discount" to people over age 50. D. Price discrimination usually leads to higher total surplus than single-price monopolies, and it can even maximize total surplus. a
Why do firms have an incentive to price discriminate?
4 In order to price-discriminate, a firm must be able to separate its customers who have different elasticities of demand. A firm can earn. more revenue by charging higher prices to consumers with relatively inelastic demand, and lower prices to consumers with relatively elastic demand. Consider the different customers listed below. Which ones have relatively inelastic demand, and which ones have relatively elastic demand? Items (4 items) (Drag and drop into the appropriate area below) Jordan goes to an out-of-state university. Categories The Jones family travels for a vacation. Robert goes to a matinee movie. Relatively elastic Drag and drop here Jerry buys multiple items (soda, popcorn, candy) from the concession stand at a movie theater. Relatively inelastic Drag and drop here
Explain the first degree of the price discrimination in the economy?
ЕОC 16.04 Which of the below is NOT an example of price discrimination? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. Airlines charge a lower price for round trips than one-way trips. a b Many Universities provide financial aid to needy students. Shops provide discount coupons to the public. Gas prices are different throughout the city.
Consider a town in which only two residents, Jacques and Kyoko, own wells that produce water safe for drinking. Jacques and Kyoko can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water. fill in every blank!! NOTE: options for first drop down question is (decreases or increases) options for second drop down question is (tying, a tit for tat strategy, a dominant strategy, a prisioners dilemma)
What would consumer surplus be?

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