What is "third-degree price discrimination" and howis it applied in markets?A) Charging different prices based on the quantitypurchased.B) Charging different prices to different consumergroups based on their elasticities of demand.C) Charging a uniform price to all consumersregardless of their willingness to pay.D) Offering discounts to consumers who purchasebundles of goods.

Step 1: Third - degree price discrimination is a pricing strategy where a seller charges different…

Answered: What is "third-degree price…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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I stumble on questions like this... Suppose a firm is charging $8 for the first six-pack of cola and $4 for the second six-pack of cola. This firm is using Multiple Choice third-degree price discrimination. first-degree price discrimination. second-degree price discrimination. first-, second- and third-degree price discrimination.
To engage in first-degree price discrimination, a firm must Multiple Choice be able to set P > MC, know each consumer's maximum willingness to pay, and prevent low-value consumers from reselling to high-value consumers. prevent low-value consumers from reselling to high-value consumers. be able to set P > MC. know each consumer's maximum willingness to pay.
Hersheypark 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.
Price discrimination is the practice of selling the same good at more than one price when the price differences are not justified by cost differences. Evaluate the following statement: "Price discrimination is possible only if no one can easily resell the good." None of these choices True, because this prevents the low-price segment of the market from reselling to the high-price segment False, because it doesn't matter whether consumers can resell the good or not False, because allowing for resale is more efficient Which of the following kinds of price discrimination occurs when each customer in a single market is charged the maximum price he or she is willing to pay? Second-degree price discrimination Third-degree price discrimination This is not an example of price discrimination Perfect price discrimination
Price discrimination leads to higher price for all consumer . True or false
Suppose that Jawa Timur Park offers a discount on admission to residents of Batu. What kind of price discrimination is this? What does this imply about the elasticity of demand for Jawa Timur Park attractions by Batu?
Write notes on: a) Cost-plus pricingb) Administered pricesc) Price discriminationd) Skimming pricinge) Penetrating pricingf) Loss leader pricingg) Price Discriminationh) Price forecasting
Consumers are with price discrimination than with single pricing. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. always better off sometimes better off never better off neither better off nor worse off 1 Sub Unanswered 1 attempt left EN || W
(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?
If you cannot prevent resale of your good, which of these occurs when attempting price discrimination? You'll end up selling large quantities at a low price. You won't be able to sell much at the low price. You'll end up selling large quantities at a high price. The people who buy at high prices will then resell the good at a discount.
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 parks
There are two proposals concerning the market efficiency: Plan A: regulate the market price at $4. Plan B: allow and help the monopoly enforce the perfect price discrimination. If you represent consumers to vote for one plan, which one would you choose? Explain with proper calculation (Hint: consumers only care about their welfare).

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