Which case below best represents a case of price discrimination?   An insurance company offers discounts to safe drivers.  A major airline sells tickets to senior citizens at lower prices than to other passengers.  A professional baseball team pays two players with identical batting averages different salaries.   A utility company charges less for electricity used during "off-peak" hours, when it does not have to operate its less-efficient generating plants.

Price discrimination leads to higher price for all consumer . True or false

An airline has two types of passengers: business passengers with fairly tight schedules and inelastic demand for airline flights and vacation passengers with flexible schedules and more elastic demand for airline flights. The tables below show the demand information for both types of passengers and the market demand for a single airline flight. Business Traveler Demand Vacation Traveler Demand Market Demand Same Price for All Passengers Price Quantity Demanded Marginal Revenue (dollars) (seats) (dollars) Price (dollars) Quantity Demanded Marginal Quantity Marginal (seats) Revenue (dollars) Price (dollars) Demanded Revenue (seats) (dollars) $500 0 $500 0 $500 0 450 25 $400 450 0 450 25 $400.00 400 50 300 400 0 -- 400 50 300.00 es 350 75 200 350 50 $300 350 125 266.67 300 100 100 300 100 200 300 200 166.67 250 125 0 250 150 100 250 275 66.67 200 150 200 200 0 200 350 16.67 150 175 150 250 150 425 100 200 100 300 100 500 50 225 50 350 50 575 0 250 0 400 0 650 Instructions: Enter your…

(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.

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).

Faced with two distinct demand functions Q=16-0,4P1 and Q2=20-0,1P, where TC=100+20Q with Q=Q1+Q2.What price will the firm charge without discrimination? A)P= 16 B)P=36 C)P=26 D)P=46

Which of the following is an example of price discrimination? charging different prices to different groups on the basis of differing abilities to pay consumer bargain hunting charging different prices to different groups on the basis of production cost differences consumers paying a price in excess of the producer's marginal cost

What can you say about the price, with and without price discrimination

If the value of price is $13 and the quantity is $14 find the total revenue