Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 14, Problem 10MC
To determine
The price
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Which of the following is NOT a condition necessary for price discrimination?
a.The product cannot be resold to another customer.
b. the product must be a durable good
c. the seller must have some market power
d. The price elasticities of demand are different for each group of consumers.
what are pricing tactics and examples? What are some forms of price discriminations?
Which of the following is not an example of price discrimination?
a.
Senior citizen discount at the movies
b.
Grocery coupons
c.
Shipping a package further costs more
d.
Charging a higher price for ice-cream during the summer and a lower price in the winter
Chapter 14 Solutions
Managerial Economics: A Problem Solving Approach
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- The following are the necessary conditions which must be fulfilled for the implementation of price discrimination except for ______ a. there should be no arbitrage b. the market must be divided into sub-markets with different elasticities of demand c. the good or service in question should not be resaleable d. the market must be divided into sub-markets with different elasticities of supplyarrow_forwardWhich of the following is not a requirement for a successful price discrimination strategy? A. A firm must have market power B. The firm must be able to prevent consumers who buy a product at a low price from reselling it to other consumers at a high price. C. Some consumers must have greater willingness to pay for the product than other consumers, and the firm must be able to know what prices consumers are willing to pay D. The good must be a very expensive goodarrow_forwardWhich of the following is NOT a condition needed for price discrimination? Select one: a. The company has market power in its product market. b. The company can keep customers from reselling the product after they have purchased it. c. The company has a perfectly elastic demand curve. d. The company knows how much different customers are willing to pay for the productarrow_forward
- Weekend hotel packages, vacation packages, cable tv plans and season ticket plans are examples of: a. price metrics b. price offer configuration c. price fencing d. price bundlingarrow_forwardDefine and give a few examples: Pricing Tactics Price Discriminations Pricing Sturcturearrow_forwardHow does price discrimination help customers?arrow_forward
- Price discrimination is the practice of selling goods at different prices to different consumers. The most common form of price discrimination is the practice of selling goods to different groups of customers at different prices. Many businesses offer students and senior citizens discounts not available to other customers. Firms engage in price discrimination in an effort to increase their profits. a. Identify three conditions that must be met for price discrimination to occur. b. Discuss the effectiveness of different strategies implemented to deal with the problems caused by increased road transport use in urban areas. c. 'Transportation patterns in Jamaica reflect the flow of people and commerce'. Discuss the significance of this statement highlighting the implications for the country as the government attempts to develop a first-world transportation system.arrow_forwardWhich of the following would not be considered price discrimination? 1 Long distance telephone rates are cheaper late at night. 2 Airline fares are cheaper if you reserved several weeks in advance. 3 The price of a brand name prescription drug is higher than the price of a generic brand. 4 Senior citizens pay less for a movie.arrow_forwardMonopoly and Price Elasticity PLEASE HELParrow_forward
- 33. Rodrigo gets a $1.00 discount by buying Cheerios on the end of the aisle that have a store coupon. Olivia buys the same sized Cheerios at the regular price in the cereal section. Is this price discrimination? True Falsearrow_forwardWhat Is Price Performance Measures?arrow_forwardYou and your friend who just graduated visit a local ice cream parlor. By showing your student id you are able to buy an ice cream cone for $1 cheaper than your friend. What type of price discrimination is this an example of? A. First-degree price discrimination B. Second-degree price discrimination C. Third-degree price discrimination D. Fourth-degree price discriminationarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co