Economics: Private and Public Choice
16th Edition
ISBN: 9781337642224
Author: James D. Gwartney; Richard L. Stroup; Russell S. Sobel
Publisher: Cengage Learning US
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Chapter 23, Problem 11CQ
To determine
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what are pricing tactics and examples? What are some forms of price discriminations?
Question
a) You might have experienced differential prices in your daily life. Please share your experience
and explain why the service providers were able to charge you different prices at different places?
b) How did the service provider, you benefited from, make the differential prices work?
c) Do you think Monopoly increases general welfare?
Explain the first degree of the price discrimination in the economy?
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Economics: Private and Public Choice
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- It is often said that a competitive market is more beneficial for the consumers as compared to the monopoly market. Why ? Explain.arrow_forwardHow does price discrimination play a role in the economy?How does the idea of price discrimination apply to an industry?arrow_forwardwhy price discrimination is profitable in the perfume market or industry ?arrow_forward
- Do you think price discrimination a socially acceptable or unacceptable practice and why?arrow_forwardBased on the demand curve you showed in question 2 above, what is the minimum and maximum price you can charge for your product? This does not mean that you will, in fact, charge the minimum or maximum price. It simply gives you an idea of the range of prices your demand curve allows you to charge. What are the quantities corresponding to the minimum and maximum price? Please show your work and explain how you calculated these prices and quantities. The demand curve I showed in question 2: P-16-4Qarrow_forwardExamine the various types of price discrimination and explain how they can benefit consumers and society?arrow_forward
- Suppose the local electrical company, a legal monopoly based on economies of scale, was split into four firms of equal size, with the idea that eliminating the monopoly would promote competitive pricing of electricity. What do you anticipate would happen to prices? Why? Use the editor to format your answerarrow_forward(a) U.S. pharmaceutical companies charge different prices for prescription drugs to buyers in different nations, depending on elasticity of demand and government-imposed price ceilings. Is this acceptable? (b) Do you agree that price discrimination is legal?arrow_forwardWhy is price discrimination economically efficient for society as a whole but disadvantageous for buyers?arrow_forward
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