Which condition is necessary for a firm to successfully implement price discrimination? A. The ability to segment the market into different groups based on elasticity of demand B. A perfectly competitive market structure C. Identical products across all segments of the market D. Perfect information among consumers about prices
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Which condition is necessary for a firm to successfully implement
A. The ability to segment the market into different groups based on elasticity of demand
B. A
C. Identical products across all segments of the market
D. Perfect information among consumers about prices
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- Which of the following statements about price discrimination is FALSE? Question 17Answer a. Price discrimination is inconsistent with perfect competition b. 1st degree price discrimination always results in an efficient outcome c. None of the statements are false d. Price discrimination typically improves efficiency e. 3rd degree price discrimination always results in an efficient outcomeIn order for a firm to engage in price discrimi- nation, it must be Group of answer choices a. experiencing constant marginal cost b. a price taker c. producing in the inelastic portion of its demand curve to raise its price and increase total revenue d. experiencing economies of scale in the relevant range of production e. able to separate consumers into different groups based on demand elasticitiesThere are 38 nearly identical ABC stores within a one-mile radius in Waikiki. The combined size of these 38 stores allows ABC to offer large quantities at favorable prices. Identify which of the following properties characterize ABC stores. A.ABC stores practice perfect price discrimination. B.For ABC stores, the marginal revenue curve is below the demand curve. C.ABC stores may earn economic profits in the long run. D.ABC stores are price takers.
- Which of the following is a necessary condition for price discrimination? Group of answer choices a. Buyers are aware of prices charged to other buyers. b. The seller is a perfectly competitive firm. c. Buyers have identical elasticities of demand. d. Resale of the product or service is possible. e. The seller can separate consumers according to their elasticities of demand.Explain your reasons 1.If demand is elastic, the difference between the monopolistic price and the competitive market price would be greater compared to when the elasticity is low. 2. In 2011, heavy rain and cold weather destroyed 10 percent of the world coffee products. Therefore, it is expected that people consume less coffee.If a firm engages in perfect price discrimination, it charges a. different prices to customers based on how many units of output they buy b. each customer the highest price the customer is willing to pay c. different prices to customers based on how old they are d. each customer the average cost of the product e. each customer the lowest price the customer is willing to pay
- Which 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.Q) 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 analysisWhich of the below is NOT an example of price discrimination? a. A store that offers a senior’s discount on Thursdays. b. A fast-food restaurant sending coupons to the public. c. A grocery store that offers better pricing if the customer buys in bulk. d. Competing grocery stores have different prices for milk.
- Which of the following are necessary conditions for successful price discrimination? a. zero transactions costs b. a perfectly competitive market structure c. an imperfectly competitive market structure d. at least two different markets with different price elasticities of demand e. at least two different markets with different price elasticities of supply OA) a, c, d, and e only OB) c and d only C) a, b, and d only D) a and c onlyRefer to the figure below. The price-discriminating firm earns a higher profit by S/Q1 MR D₁-AR₁ MR₁ D₂-AR AC-MC Quantity Select one: a. charging a lower price as time goes by. b. charging a lower price to the consumers who acquire the good first. c. charging a higher price as time goes by. d. charging an average of a high price and a low price over time.Which of the following is NOT an example of price discrimination? a. Christmas sales b. student discounts at the supermarket c. discounted meals for children at Burger King d. airlines charging lower prices to travelers who travel on Sunday night