When a customer is required to buy one product only if the customer also buys a second product, this is called Select the correct answer below: bundling predatory pricing restrictive practice tying sales

A monopoly A) cannot price discriminate because such a pricing strategy is illegal in the United States. B) faces extensive competition from firms making close substitutes. C) must determine the price it will charge.

When there are low barriers to entry in a now profitable market, there may be a flood of alternative suppliers. This will cause a shift in the demand curve and price. Group of answer choices left, higher left, lower right, lower right, higher the

Third-degree Price Discrimination requires that the seller be able to identify its customers as to certain characteristics. True False

As a basic rule of thumb, business owners should differentiate their products as much as possible when: a) price competition is intense. b) price competition is subdued. c) costs are low. d) costs are high.

Harley Davidson is a typical example of: Stealth marketing Tribal marketing Mass marketing Retro marketing

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).

A business that price-discriminates will generally charge some customers more than marginal cost, and it will generally charge other customers less than marginal cost.   True or False

Suppose the figure to the right represents the market for a particular brand of soap such as Zest, Dove, or Ivory. Suppose also that the market is monopolistically competitive and the firm behaves optimally to maximize profit. Use the rectangle drawing tool to shade in the firm's economic profit or loss. Properly label the object. Carefully follow the instructions above, and only draw the required objects. Price and cost (per pack) 4.00- 3.80- 3.60 3.40 3.20 3.00- 2.80- 2.60- 2.40- 2.20 2.00+ 1.80 1.60- 1.40- 1.20 1.00- 0.80 0.60 0.40- 0.20- 0.00+ 0 2 MC MB 4 6 8 10 12 14 16 Quantity (packs of soap in thousands) ATC 18 20

QUESTION 2 Uber provides point to point car transport services in Brisbane. The typical Uber service is called UberX. Uber also offers a service called UberSelect, a premium service that uses expense, newer cars. UberSelect costs approximately 40% more for customers than UberX. Which of the following statements are true: UberSelect is an example of third degree price discrimination. UberSelect is an example of using peak load pricing. Charging the same price for UberX and UberSelect would give Uber greater profits. The decision to charge customers more for UberSelect is a result of their demand being more elastic than UberX customers.