This question has two parts. 1 2. List two conditions required for price discrimination to take place. No need to explain, just list two conditions separtely. How do income effect influence work hours when wage increases? Be specific and write your answer in one line or maximum two lines.

This question has two parts. 1 2. List two conditions required for price discrimination to take place. No need to explain, just list two conditions separtely. How do income effect influence work hours when wage increases? Be specific and write your answer in one line or maximum two lines.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter10: Monopoly

Section: Chapter Questions

Problem 8QP

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Price Discrimination

Price discrimination or differential pricing is based on the principle that the seller will charge the buyer a price based on the buyer’s ability and willingness to pay for the product rather than applying uniform pricing for all.

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Price Discrimination à what does it mean? Who does this practice? How and why? Give suitable examples in this regard
Consider the standard set up for thinking about statistical discrimination from last class (groups have same average productivity, but one group has a lower slope on the signal component – call this group women). Neither group has a zero y-intercept. A government issues a minimum wage requirement. Which of the following is true: A. At a low enough minimum wage, employers will hire men and women of any signal type. B. At a low enough minimum wage, employers will hire high signal men and low signal women. C. At a low enough minimum wage, employers will hire women of any signal type and only higher signal men. D. At a high enough minimum wage, employers will hire low signal men and high signal women.
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Explain the first degree of the price discrimination in the economy?
The following are two distinct demand functions: q1=24−0.2p1 and q2=10−0.05p2. The average cost AC=40+35/q. What price the firm will change with discrimination?
The firm uses price discrimination to increase its profits. What is the change in the price level? Assume the firm is acting to maximize profits before and after price discrimination. A- From $8 to $14. B-From $14 to $8. C-From $12 to demand level at every output quantity D-From $8 to demand level at every output quantity. E-From $14 to demand level at every output quantity
Use the table below to answer the following questions:QuantityDemand (Price)Marginal RevenueMarginal CostAverage Cost1$120012005005002110010002753883100080022533349006002503135800400400330670020050035876000700407 Are there consumers who want the product but are not willing to pay the profit-maximizing price the firm will charge? How can you tell?If the firm could charge every consumer exactly what that consumer was willing to pay (called perfect price discrimination), would the quantity the firm produced increase, decrease, or remain the same? Would the firm’s profits increase, decrease, or remain the same? Explain your answers.
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