Which of the following describes bundling as a form of price discrimination? Customers with similar demographic characteristics are grouped together. O a. O b. Customers with similar preferences are put in groups, each with a set price. O c. Different products are sold together at a cheaper total price than if sold separately. O d. A product is sold at a lower per-unit price if several units are bought together.

мсо 20 A profit-maximising firm produces homogenous (identical) units of output at a constant marginal cost and the units can be sold in two distinct market segments, which are segments A and B. On the assumption that the absolute value of the price elasticity of demand is lower in market segment A than it is in market segment B, if the firm decides to exercise price discrimination, we would expect to observe: A Ido not want to answer this question. В a higher price in market segment A to reflect the lower price elasticity the same price in both market segments since the marginal cost of production is the same for both markets and profits are maximised at MR = MC in both C markets D a higher price in market segment B to reflect the higher price elasticity E MR MC in market segment B because the higher elasticity allows a mark up of marginal revenue over marginal cost

what is the following pricing strategy or price discrimination approach? the olympic commission offers different soccer ticket prices depending on seat location within the stadium (closer or further away from the pitch, behind the goalkeeper, halfway line, etc). B.Peak Load Pricing A.Bundling C.Indirect Segmentation Price Discrimination D.Complete Price Discrimination E.Direct Segmentation Price Discrimination

100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 $40 $20 $100 0 $60 2 4 MR Suppose that Vanessa who owns a Zumba fitness center in rural Indiana can identify her customers' demand. How much would she charge in order to achieve 1st degree (=perfect) price discrimination? MC ATC D 6 8 10 Quantity (clients per day)

If a firm is practicing third−degree price discrimination and is charging a price of​ $8 per unit to consumers in Group A and a price of​ $10 to consumers in Group​ B, which of the following is​ true?   A. Group A consumers have a lower price elasticity than Group B consumers.   B. Group B consumers have a greater price elasticity than Group A consumers.   C. Group A consumers have a greater price elasticity than Group B consumers.   D. Group A consumers are less responsive to price changes than Group B consumers.

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 not possible when a good is sold in a perfectly competitive market." False, because perfectly competitive firms do not profit maximize by setting marginal revenue equal to marginal cost None of these choices True, because perfectly competitive firms have no market power False, because perfectly competitive firms have market power 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? Perfect price discrimination Third-degree price discrimination Second-degree price discrimination ○ This is not an example of price discrimination

Sponser's Superior Stoven advertises a one-day sale on electronic stoves. The ad specifies that the discount is only available to senior citizens aged over 65. W does the firm include this restriction? Spenser's Superior Stoves uses this restriction OA to provent resale between consumers. OB. to increase market power, OC. te pracice nonlinear price discalmination OD. te practice group price discrimination. OE to practice perfect price dscrimination

• Provide an example of price discrimination from your own experience or from your work. Is this an example of first-degree, second-degree, or third degree price discrimination? • Describe the conditions that allow the firm to price discriminate in your example. • How does this practice affect the firm and its consumers?