Which of the following is a good example of a seller practicing Partial Price Discrimination? Select one: a. A car dealership individually negotiates with each new car buyer to arrive at the price that buyer will pay. b. An airline charges a higher price to travelers flying longer distances, and a lower price to those flying shorter distances. c. A house is sold to the buyer who offered the highest price when other potential buyers offered lower prices. d. An airline charges business travelers a higher price than tourist travelers for seats on the same flight.

Which of the following is a good example of a seller practicing Partial Price Discrimination? Select one: a. A car dealership individually negotiates with each new car buyer to arrive at the price that buyer will pay. b. An airline charges a higher price to travelers flying longer distances, and a lower price to those flying shorter distances. c. A house is sold to the buyer who offered the highest price when other potential buyers offered lower prices. d. An airline charges business travelers a higher price than tourist travelers for seats on the same flight.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 3E

See similar textbooks

Similar questions

everal Governments in CARICOM nations are reluctant to allow the provision of telecommunication services by multiple providers. They prefer that a Government Agency provides these services as they believe that consumers will be protected. However the revenue they gain should not be ignored as a possible motive. A recent study found that 8 countries out of the 15 in the CARICOM nations’ have telecommunication services being provided by the a state company. For example, in St. Lucia, De Phone is the sole provider of telecoms. They offer discounts to senior citizens and students and also provide a lower price for individual who purchase multiple plans. Of note, the remaining CARICOM nations, including Trinidad and Tobago, have opened their markets to competition. These countries have seen increased advertising among competitors to market their product.i. State what market structure exists in St. Lucia and illustrate how equilibrium price and quantity determined in this industry with…
Several Governments in CARICOM nations are reluctant to allow the provision of telecommunication services by multiple providers. They prefer that a Government Agency provides these services as they believe that consumers will be protected. However the revenue they gain should not be ignored as a possible motive. A recent study found that 8 countries out of the 15 in the CARICOM nations’ have telecommunication services being provided by the a state company. For example, in St. Lucia, De Phone is the sole provider of telecoms. They offer discounts to senior citizens and students and also provide a lower price for individual who purchase multiple plans. Of note, the remaining CARICOM nations, including Trinidad and Tobago, have opened their markets to competition. These countries have seen increased advertising among competitors to market their product. i. State what market structure exists in St. Lucia and illustrate how equilibrium price and quantity determined in this industry.Draw…
Several Governments in CARICOM nations are reluctant to allow the provision of telecommunication services by multiple providers. They prefer that a Government Agency provides these services as they believe that consumers will be protected. However the revenue they gain should not be ignored as a possible motive. A recent study found that 8 countries out of the 15 in the CARICOM nations’ have telecommunication services being provided by the a state company. For example, in St. Lucia, De Phone is the sole provider of telecoms. They offer discounts to senior citizens and students and also provide a lower price for individual who purchase multiple plans. Of note, the remaining CARICOM nations, including Trinidad and Tobago, have opened their markets to competition. These countries have seen increased advertising among competitors to market their product. State what market structure exists in Trinidad and Tobago. Explain if excess profit will exist in the long run.
Several Governments in CARICOM nations are reluctant to allow the provision of telecommunication services by multiple providers. They prefer that a Government Agency provides these services as they believe that consumers will be protected. However the revenue they gain should not be ignored as a possible motive. A recent study found that 8 countries out of the 15 in the CARICOM nations’ have telecommunication services being provided by the a state company. For example, in St. Lucia, De Phone is the sole provider of telecoms. They offer discounts to senior citizens and students and also provide a lower price for individual who purchase multiple plans. Of note, the remaining CARICOM nations, including Trinidad and Tobago, have opened their markets to competition. These countries have seen increased advertising among competitors to market their product. State what market structure exists in St. Lucia and illustrate how equilibrium price and quantity determined in this industry with graphs
Explain how the mechanism for the application of three types of price discrimination that can be effective from a firm's point of view in order to maximize its profit. You are required to provide examples to show how this can be done.
Suppose 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?
1. Hertz and other car rental companies charge much more to rent luxury cars such as Ferraris andBentleys than to rent compact cars such as the Toyota Yaris or Chevrolet Sonic. Is this pricediscrimination? Explain 2. A Grocery store issued frequent-buyer cards to willing customers and collected information about their purchases. How should a manager use this information to offer customized discount coupons to individuals?
The following table presents the valuations that 5 different consumers have for 2 different products. The production costs are $10 per unit of good A and $10 per unit of good B. The firm producing them can choose to price them independently or using a bundling strategy. What is the profit the firm will realize, if it prices optimally? VALUATIONS Product A Product B Consumer 1 5 95 Consumer 2 10 90 Consumer 3 50 50 Consumer 4 80 20 Consumer 5 95 5 ANSWER SHOULD BE 410. I will like if it is right! showing my support. Thank you.
Logically Explain: (a) Which degree of price discrimination may cause favor for the consumer rather than producer? Explain it with the help of most appropriate example.
Q4) What is price discrimination. What are its types and how it affects production and prices?
10. Does the presence of online auction sites, such as eBay, make it easier or harder for traditional retailers and wholesalers to engage in profitable price discrimination? Explain.
ECON: Industrial Organization Suppose two markets are identical except that in market A there is a monopoly seller who charges a single price, whereas in market B there is a monopoly seller who practices perfect price discrimination. In which market is the quantity traded higher? In which market is the total surplus higher? Briefly explain.