
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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How does the idea of price discrimination apply to an industry?
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- What is the maximum profit for individual pricingarrow_forwardHello, I need some clarity on this queston. If you can explain briefly how you got your answers that will be very helpful.arrow_forwardHersheypark 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_forward
- explain why a monopoly would want to price discriminate explain the (potential) effects of price discrimination on market efficiency.arrow_forwardPlease read the following article from The Atlantic on the proliferation of price discrimination for online shopping https://goo.gl/EGFynW A.) The article notes that we are moving toward a situation in which perfect price discrimination is no longer “only a classroom thought experiment.” Suppose perfect price discrimination were to become a reality. What would this imply as far as consumer surplus, producer surplus, and market surplus in the market for online retail? B.) The article references a study showing that by using big data online firms are able to boost profits. When firms engage in price discrimination and experience an increase in profits, does this imply that consumers are made worse off as a result? Explain. C.) Do you agree with the author’s belief that the proliferation of price discrimination “makes suckers of us all”? Explain. D.) Do you consider the increased price discrimination in recent years as a net positive or a net negative to society? Explainarrow_forwardmicroeconomicsarrow_forward
- Tara loves to go through the Saturday paper and cut out supermarket coupons. How do you think Tara's coupon-clipping habits apply to the concept of price discrimination?arrow_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_forwardName three places you frequent that use price discrimination and explain the discrimination used.arrow_forward
- Which of the following is not an example of price discrimination? a. rental car companies charging lower prices to local residents than to out-of-state residents b. mattress sales on Memorial Day c. student discounts at museums d. children's discounts at amusement parksarrow_forwardIn terms of perfect first-degree price discrimination, could you show that the firm's price of the last unit sold would equal the marginal cost of producing that unit and that the firm would produce the perfectly competitive level of output? If you can use a graph, that would help me understand thank you.arrow_forwardWhich of the following statements about price discrimination are true? Choose one or more: A. One example of price discrimination is Subway charging more for its footlong subs than for its 6-inch subs. B. One example of price discrimination is a movie theater charging a lower price for a 2:00 PM movie than it charges for the same movie at 8:00 PM. C. One example of price discrimination is a restaurant that provides a "senior discount" to people over age 50. D. Price discrimination usually leads to higher total surplus than single-price monopolies, and it can even maximize total surplus. aarrow_forward
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