1. As manager, you have decided that it’s time for some price discrimination to benefit your...

1. As manager, you have decided that it’s time for some price discrimination to benefit your firm. There are typically three different “degrees” of price discrimination to choose from. Describe each “degree” of price discrimination, and then explain the specific “degree” you would use that has the greatest applicability to a range of goods that consumers typically purchase from your firm.

Again, no hedging your bet. :-) Select only one specific degree. Do not select more than one degree or combinations of degrees.

2. Being an intelligent manager of an electric utility company, you decide to take advantage of what’s called capacity utilization rates provided by the Federal Reserve to help you decide if more or less spending is a wise course to take. This month’s capacity utilization rate applicable to your company is 82%. Based on this information, what will you specifically advise the company to do in order to either expand or contract capacity? Explain why.

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Rahul Sunny answered 1 year ago

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