True / False / Uncertain type questions 1. If a company applies strategy "take 3 and pay 2", then it can be said that it applies type II discrimination. Please justify and graph if applicable 2. If a company increases its packaging capacity by 30% and its selling price by 30%, then it is not applying type II price discrimination. Please justify and graph if applicable 3. If a monopolistic firm operates at full capacity, it should not apply type II price discrimination. Please justify and graph if applicable 4. Type II price discrimination generates more consumer surplus than type I discrimination. Please justify with a graph
Course:
True / False / Uncertain type questions
1. If a company applies strategy "take 3 and pay 2", then it can be said that it applies type II discrimination. Please justify and graph if applicable
2. If a company increases its packaging capacity by 30% and its selling price by 30%, then it is not applying type II
3. If a monopolistic firm operates at full capacity, it should not apply type II price discrimination. Please justify and graph if applicable
4. Type II price discrimination generates more
Trending now
This is a popular solution!
Step by step
Solved in 6 steps
According with my professor guide:
1) It's TRUE. He says in this case a incentive to more consumption exists
2) It's TRUE. He says
3) It's TRUE. Monopolist firm will couldn't to respond a increase demand
4) It's TRUE. Graphic is needed
Please confirm answers. THANKS