Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 23, Problem 8QP
To determine
The differences and similarities between
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Amazon Discrimination
In September 2000, Amazon offered a Planet of the Apes DVD to customers using a Netscape Web browser for $64.99. Several seconds later, however, a similar search performed with Microsoft’s Internet Explorer browser resulted in a price of $74.99 for the same product. Why?
Price Discrimination
Describe a price discrimination opportunity your company faces—direct, indirect, or bundling. Tell your company how best to implement the scheme, and compute the profit consequences of implementing the scheme.
Is 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?
a) 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?
Chapter 23 Solutions
Economics (MindTap Course List)
Ch. 23.1 - Prob. 1STCh. 23.1 - Prob. 2STCh. 23.1 - Prob. 3STCh. 23.3 - Prob. 1STCh. 23.3 - Prob. 2STCh. 23.3 - Prob. 3STCh. 23.3 - Prob. 4STCh. 23.5 - Prob. 1STCh. 23.5 - Prob. 2STCh. 23.5 - Prob. 3ST
Ch. 23 - Prob. 1QPCh. 23 - Prob. 2QPCh. 23 - Prob. 3QPCh. 23 - Is there a deadweight loss if a firm produces the...Ch. 23 - Prob. 5QPCh. 23 - Prob. 6QPCh. 23 - Prob. 7QPCh. 23 - Prob. 8QPCh. 23 - Prob. 9QPCh. 23 - Prob. 10QPCh. 23 - Prob. 11QPCh. 23 - Prob. 12QPCh. 23 - Prob. 13QPCh. 23 - Prob. 14QPCh. 23 - Prob. 1WNGCh. 23 - Prob. 2WNGCh. 23 - Prob. 3WNGCh. 23 - Prob. 4WNGCh. 23 - Prob. 5WNGCh. 23 - Prob. 6WNG
Knowledge Booster
Learn more about
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
- What conditions should exist for price discrimination. [arrow_forwardThe dilemma of price discrimination is that, for example in the case of ticket scalping, it transfers consumer surplus into producer surplus." Is it in society's best interest to allow the scalping of tickets? Explain. Why do the original ticket sellers refuse to price discriminate like the scalpers? Explain.arrow_forwardWhat of the following statements is not true about group price discrimination? Group of answer choices it is less difficult to charge different prices to different consumers if a good is an individually provided service, such as haircuts the group of consumers with more elastic demand (as a given price) will be charged a higher price in theory the good considered must be the same, but in the real world a price discriminating monopolist may need to change the good in order to charge different prices (e.g., put it into a different container or box). Which is the best example of price discrimination? Group of answer choices Higher price for a Ford truck than for a Ford car. Different price for a car wash on Tuesday versus Wednesday Average price of a 2000 square foot home in California being higher than in South Dakota.arrow_forward
- Suppose you can separate consumers into two groups: Group 1 has a price elasticity of demand = -3 and group 2 has a price elasticity of demand of -9. If you could conduct third-degree price discrimination, which group would you charge a higher price to? Why? What would be the relative price of group 1 to group 2? Suppose that the profit-maximizing price for group 2 is $12. What price should I charge group 1? Show all your work.arrow_forwardQuestion 11.11 Which case below best represents a case of price discrimination? An insurance company offers discounts to safe drivers. A major airline sells tickets to senior citizens at lower prices than to other passengers. A professional baseball team pays two players with identical batting averages different salaries. A utility company charges less for electricity used during "off-peak" hours, when it does not have to operate its less-efficient generating plants.arrow_forwardSuppose you are the owner of a movie theater. There are two types of customers: senior (‘s’) and non-senior (‘ns’). You know if a customer is a senior or non-senior and so you could use price discrimination with selection by indicators. The demand for movies is: Senior: qs = 30 − 3ps Non-Senior: qns = 15 − pns 1. Plot the total demand curve and the marginal revenue curve if the two types of consumers are as one. 2. Suppose that MC = 1 and that you can only set a single price. 2a. What is the optimal uniform price? 2b. What is the profit under uniform pricing? 2c. What is consumer surplus under uniform pricing?arrow_forward
- In terms of reality, could you show that it is easier for a firm to practice second-degree price discrimination than it is for a firm to practice first-degree price discrimination? If you can use a graph, that would help me understand thank you.arrow_forwardRecently I received an e-mail which stated the following. “We'd like to offer you a special discount on your next purchase. Click here to visit shop.mlb.com and you'll automatically receive 15% OFF your purchase at checkout.” This offer is an example of a price _____ engaging in _____ price discrimination. Select one: A. taker; second-degree B. maker; first-degree C. maker; second-degree D. taker; third-degree E. taker; first-degree F. maker; third-degreearrow_forwardIs it price discrimination when a professional football team charges, say, $150 per ticket for 50-yard-line tickets in the lower deck and $50 per ticket for upper-deck tickets overlooking the end zone? Why or why not? please explain it to me in 250 wordsarrow_forward
- In Ramadhan, majority of Hypermarkets raise the price of fruits and vegetables. It is noticed by the government and they drafted a law to prohibit price discrimination. This law comes under:arrow_forwardExplain how price discrimination increases profit.arrow_forwardUnder pure monopoly market (PMM), MR=MC but not equal to Price. Why is this so? And what is the welfare effect of this? Please explain the negative effect to the consumers when MR is NOT EQUAL to Price?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning