EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Chapter 11, Problem 8SP
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Explain why an attraction is still motivated to apply price discrimination in pricing even though it has competitors. What assures its success in doing so?
Tourism related topic
Q3) How is peak-load pricing a form of price discrimination? Can it make consumers better off? Give anexample.
Describe how the following firms could implement price discrimination (or an advanced pricing technique). Be specific about the degree, which markets/customers are charged higher/lower prices, and what might prevent them from implementing the strategy.
Restaurants
Airlines
Cable Providers
Apple growers
hotels
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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
- Suppose that the only theater in town has successfully had the following pricing system for years: seniors pay $5, children under 12 years old pay $4, local students pay $6, veterans pay $7, and all other adults pay $8. According to price discrimination theory, which group has the greatest price elasticity of demand? Students Seniors Veterans Children under 12 years old Adultsarrow_forwardQ3) How is peak-load pricing a form of price discrimination? Give anexample.arrow_forwardIdentify nine common pricing methods.arrow_forward
- Suppose you were asked to manage a golf course that was currently charging a uniform price. Would you suggest that the course continue with this price plan or switch to a two-part pricing plan? Explain your decision and how you would choose the optimal price.arrow_forwardAnswer choices are first blank: negative, positive, zero second blank: an equal number of, fewer, morearrow_forwardWhat would be your response to the statement,“Profit maximization is the only legitimate pricingobjective for the firm”?arrow_forward
- Hersheypark in Pennsylvania mentions the following offer on its Web page: “A military discount is available at Hersheypark during the regular summer operating schedule off of the Regular, Junior and Senior One Day admission. This discount is available to active duty military, reserves, retired military personnel, and members of the National Guard.” This is _____ price discrimination.arrow_forwardskip if you already did this or else downvotearrow_forwardArticle: BIZ Community. 2023. Innovative sustainability trends give South Africa's coffee industry a caffeine kick, 21 June 2023. [Online]. Available at: https://www.bizcommunity.com/Article/196/87/239424.html# [Accessed 23 January 2023]. Q.4.1 Defend the use of third-degree price discrimination by Tribeca Coffee when entering new markets. Note: you are required to provide at least two (2) application points. Q.4.2 Identify two (2) common errors in pricing that Tribeca Coffee could be potentially exposed to when entering Ethiopia and recommend ways for the business to minimise the impact of such errors. Q.4.3 Tribeca Coffee has decided to invest in its own fleet of vehicles to move its product across the SADC region. Explain how the business can capitalise on opportunities and minimise the impact of challenges in transportation technology.arrow_forward
- Candy bars are produced in a monopolistically competitive market. A profit-maximizing producer finds that marginal revenue equals marginal cost equals $1.50 when output is 500 bars. Also, The average total cost (ATC) is $3 and price is $2 when output is 500 bars. An economist studying this information can conclude that economic profit is -$500 -$450 -$300 $100arrow_forwardFor each example, select the type of price discrimination (first degree, second degree, third degree, intertemporal, two part tariff, peak load pricing) that is being used. A firm charges each consumer their reservation price A tennis pro charges $15/hour for lessons for children and $30/hour for lessons for adults Amazon Prime charges $12.99/month plus the price of all goods purchased. A firm charges only $0.25 more for a large soda than a small soda. A firm charges more for electricity used during the day than at night.arrow_forwardWhat 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.arrow_forward
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