Economics For Today
10th Edition
ISBN: 9781337670654
Author: Tucker
Publisher: Cengage
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Chapter 9, Problem 17SQ
To determine
The necessary condition for
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Which of the following is NOT a condition necessary for price discrimination?
a.The product cannot be resold to another customer.
b. the product must be a durable good
c. the seller must have some market power
d. The price elasticities of demand are different for each group of consumers.
Which of the following is not a requirement for a successful price discrimination strategy?
A. A firm must have market power
B. The firm must be able to prevent consumers who buy a product at a low price from reselling it to other consumers at a high price.
C. Some consumers must have greater willingness to pay for the product than other consumers, and the firm must be able to know what prices consumers are willing to pay
D. The good must be a very expensive good
The following are the necessary conditions which must be fulfilled for the implementation of price discrimination except for ______
a. there should be no arbitrage
b. the market must be divided into sub-markets with different elasticities of demand
c. the good or service in question should not be resaleable
d. the market must be divided into sub-markets with different elasticities of supply
Chapter 9 Solutions
Economics For Today
Ch. 9.1 - Prob. 1GECh. 9.1 - Prob. 2GECh. 9.2 - Prob. 1YTECh. 9.4 - Prob. 1YTECh. 9 - Prob. 1SQPCh. 9 - Prob. 2SQPCh. 9 - Prob. 3SQPCh. 9 - Prob. 4SQPCh. 9 - Prob. 5SQPCh. 9 - Prob. 6SQP
Ch. 9 - Prob. 7SQPCh. 9 - Prob. 8SQPCh. 9 - Prob. 9SQPCh. 9 - Prob. 10SQPCh. 9 - Prob. 11SQPCh. 9 - Prob. 12SQPCh. 9 - Prob. 13SQPCh. 9 - Prob. 1SQCh. 9 - Prob. 2SQCh. 9 - Prob. 3SQCh. 9 - Prob. 4SQCh. 9 - Prob. 5SQCh. 9 - Prob. 6SQCh. 9 - Prob. 7SQCh. 9 - Prob. 8SQCh. 9 - Prob. 9SQCh. 9 - Prob. 10SQCh. 9 - Prob. 11SQCh. 9 - Prob. 12SQCh. 9 - Prob. 13SQCh. 9 - Prob. 14SQCh. 9 - Prob. 15SQCh. 9 - Prob. 16SQCh. 9 - Prob. 17SQCh. 9 - Prob. 18SQCh. 9 - Prob. 19SQCh. 9 - Prob. 20SQ
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- Which of the following is not an example of price discrimination? a. Senior citizen discount at the movies b. Grocery coupons c. Shipping a package further costs more d. Charging a higher price for ice-cream during the summer and a lower price in the winterarrow_forwardThe practice of posting a discrete schedule of declining prices for different ranges of quantities. Select one: a. First-degree price discrimination b. Fourth degree price discrimination c. Third-degree price discrimination d. Fifth degree price discrimination e. Second-degree price discrimination.arrow_forward33. Rodrigo gets a $1.00 discount by buying Cheerios on the end of the aisle that have a store coupon. Olivia buys the same sized Cheerios at the regular price in the cereal section. Is this price discrimination? True Falsearrow_forward
- Which of the following is NOT a condition needed for price discrimination? Select one: a. The company has market power in its product market. b. The company can keep customers from reselling the product after they have purchased it. c. The company has a perfectly elastic demand curve. d. The company knows how much different customers are willing to pay for the productarrow_forwardQ) Perfect price discrimination transfers the gains from trade from ________ to ________. Option. a. producers; consumers b. society; consumers c. society; producers d. producers; society e. consumers; producers Correctly explain with detail analysisarrow_forward(1) what is an example of price discrimination that you have experienced ? is this price diesccrimination beneficial to consumers ? why yes or why no?arrow_forward
- When firms price discriminate they Select one: a. get additional surplus from consumers who would have bought at the profit-maximizing uniform price but lose sales because of the higher prices. b. maintain surplus from existing consumers but pick up additional consumers that would not have bought at the profit-maximizing uniform price. c. get additional surplus from consumers who would have bought at the profit-maximizing uniform price. d. None of the above.arrow_forward1. Company A is the only one that can sell a certain number of products in New York City. Firm A faces competition elsewhere in the United States. If Company A is able to price discrimination, a. Will prices in New York City be different from elsewhere? if yes or no, explain your reasons clearly. b. In this case, do you think there will be a high correlation of price movements between New York City and elsewhere? c. What do you think about the existing market structure in New York? please help with your explanation by drawing the required relevance curve.arrow_forwardWhich of the following is necessary for a firm to practice price discrimination? Group of answer choices a. The firm is a member of a cartel. b. The demand curve for the product is perfectly inelastic. c. The firm can prevent resale of its goods. d. The government strictly enforces antitrust laws. e. The demand curve for the product is perfectly elastic.arrow_forward
- You and your friend who just graduated visit a local ice cream parlor. By showing your student id you are able to buy an ice cream cone for $1 cheaper than your friend. What type of price discrimination is this an example of? A. First-degree price discrimination B. Second-degree price discrimination C. Third-degree price discrimination D. Fourth-degree price discriminationarrow_forwardPlease answer correct plz Don't answer by pen paper plzarrow_forwardWhich of the following statements regarding perfect price discrimination is false? Question 7Answer a. Perfect price discrimination yields the same market price and output result as perfect competition. b. Perfect price discrimination can eliminate the deadweight loss to society of a monopoly. c. Perfect price discrimination is an attempt by monopolists to capture consumer surplus as profit. d. Perfect price discrimination is charging different prices to different buyers.arrow_forward
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