Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Chapter 12, Problem 2MC
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Question 3 In the car rental industry, each car rental firm typically offers many different types of carsat different prices. However, during a long period when US households’ income(consumer income) got lower, firms tended to offer fewer types of cars (fewer versions).about versioning, what could be the possible reason?Possible reason:
Hello, please answer the questions below. Thanks!
1)Some business owners or service providers offer lower prices to lower income individuals. These sliding fees are often explained as a charitable gesture. How could the sliding fees also be a profit-maximizing strategy?
2)And how does the type of pricing in part (a) make consumers better off?
The manager of a movie theater is developing his policies for the structure of his movie admission prices. He knows that there are two segments of his market. Segment A consists of frequent moviegoers. Segment B consists of those who go to the movies only occasionally.
Describe the concept of the best price that is presented in the course material. How can you tell if a price for a particular market segment is that segment’s best price?
Which of the movie theater’s two market segments is likely to have the lowest best price? Use the three factors that determine the best price to justify your answer.
If the movie theater’s two market segments indeed have different best prices, why would it be in the manager’s interest to charge each of the two market segments a different price rather than have a single admission price for all customers?
Of the six price-segmentation fences described in the course, name and describe one that could be used to effectively charge one price to Segment…
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Managerial Economics: A Problem Solving Approach
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