EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Chapter 11, Problem 3SP
To determine
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why price discrimination is profitable in the perfume market or industry ?
Explain how price discrimination increases profit.
Which of the following is an example of second-degree price discrimination?
Group of answer choices
a theatre that offers lower prices for seniors
an airline company that offers an economy class ticket at a lower price than a business class ticket
an electricity company that offers lower prices for new customers
a gym that charges everybody the same membership and per visit fees
none of the other answers
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EBK PRINCIPLES OF MICROECONOMICS (SECON
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Define price discrimination. Give two examples of price discrimination. How does perfect price discrimination affect consumer surplus, producer surplus and total surplus?arrow_forwardIs this a form of price discrimination? Why? Include in your analysis differing levels of elasticity, if relevant, and any other feature. Why would an airline use this practice? Provide a dollar and cents example. The airlines caught up with this scheme and ended it. What principal of price discrimination did the students violate so as to end it?arrow_forwardIf a firm engages in perfect price discrimination, it chargesarrow_forward
- One example of price discrimination is when movie is newly released the ticket price for movie theater and price of DVD's are very expensive. After some time, the same movie ticket and DVD price become cheaper. Use this example to discuss the benefits and potential negative consequences of a price discrimination pricing strategy.arrow_forwardWhich of the following is an example of second-degree price discrimination? an airline company that offers an economy class ticket at a lower price than a business class ticket none of the other answers an electricity company that offers lower prices for new customers a gym that charges everybody the same membership and per visit fees a theatre that offers lower prices for seniorsarrow_forwardwhat are pricing tactics and examples? What are some forms of price discriminations?arrow_forward
- Which of the following is an example of price discrimination? charging different prices to different groups on the basis of differing abilities to pay consumer bargain hunting charging different prices to different groups on the basis of production cost differences consumers paying a price in excess of the producer's marginal costarrow_forwardHow can a firm successfully undertake price discriminationarrow_forwardWhich of the following is NOT an example of price discrimination? All of the above are examples of price discrimination. Firms in a perfectly competitive industry charging higher prices during periods of high demand. IBM and HP deliberately reducing performance of low-end products. A movie theater offering student discounts on movie tíckets.arrow_forward
- Some pizza joints charge more for delivered pizza than if customers pick up the pizza at the restaurant. Explain how this might be an example of third-degree price discrimination and provide another explanation for this pricing difference other than price discrimination.arrow_forwardExplain price discrimination. What are the conditions to make price discrimination effective? Provide your answers with examples from the Airline Industry.arrow_forwarda) Why does TRUVADA cost $1,780 in the United States whereas it's just $8 in Australia?b) Can you provide other examples of price discrimination?arrow_forward
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