Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Chapter 12, Problem 11Q
(a)
To determine
The degree of
(b)
To determine
The degree of price discrimination when a combo meal is costing less than buying items separately.
(c)
To determine
The degree of price discrimination when a guy is selling watches on different prices to customers who are willing to buy.
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Chapter 12 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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- Identify nine common pricing methods.arrow_forwardYou work for the only car rental company at an airport renting identical mid-size cars. They want to implement a price discrimination strategy. What price discrimination strategy would you recommend? The goal here is to get to you to think about the three things below. Focus your answer on them. You don't need to do any additional research. (1) Does your company have market power? (2) What are your market segments? (3) What information do you need?arrow_forwardHow much should I charge in order to maximize the revenue of this sale?arrow_forward
- 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.arrow_forwardAmazon Discrimination In September 2000, Amazon offered a Planet of the Apes DVD to customers using a Netscape Web browser for $64.99. Several seconds later, however, a similar search performed with Microsoft’s Internet Explorer browser resulted in a price of $74.99 for the same product. Why? Price Discrimination Describe a price discrimination opportunity your company faces—direct, indirect, or bundling. Tell your company how best to implement the scheme, and compute the profit consequences of implementing the scheme.arrow_forwardSuppose you were asked to manage a golf course that was currently charging a uniform price. Would you suggest that the course continue with this price plan or switch to a two-part pricing plan? Explain your decision and how you would choose the optimal price.arrow_forward
- why price discrimination is profitable in the perfume market or industry ?arrow_forwardTara loves to go through the Saturday paper and cut out supermarket coupons. How do you think Tara's coupon-clipping habits apply to the concept of price discrimination?arrow_forwardName three places you frequent that use price discrimination and explain the discrimination used.arrow_forward
- Question a) You might have experienced differential prices in your daily life. Please share your experience and explain why the service providers were able to charge you different prices at different places? b) How did the service provider, you benefited from, make the differential prices work? c) Do you think Monopoly increases general welfare?arrow_forwardSuppose you can separate consumers into two groups: Group 1 has a price elasticity of demand = -3 and group 2 has a price elasticity of demand of -9. If you could conduct third-degree price discrimination, which group would you charge a higher price to? Why? What would be the relative price of group 1 to group 2? Suppose that the profit-maximizing price for group 2 is $12. What price should I charge group 1? Show all your work.arrow_forwardIf price discrimination is the option to implement within the context of elasticity of demand, what pricing policy should be implemented in each market to raise total revenue?arrow_forward
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