1. Why is preventing resale a key to successful price discrimination? 2. Why does price discrimination...

1. Why is preventing resale a key to successful price discrimination?

2. Why does price discrimination improve the efficiency of the market?

Expert Solution

Rahul Sunny answered 2 years ago

Why does price discrimination improve the efficiency of the market?

QUESTION 1 Which of the following conditions is NOT required for successful direct price discrimination? A....

QUESTION 1 Which of the following conditions is NOT required for successful direct price discrimination? A. The seller must be able to prevent arbitrage between low-value and high-value buyers B. The seller must be able to identify customers as high-value or low-value buyers C. The seller must offer different products for high-value and low-value groups of consumers D. The seller should charge higher prices to high-value buyers QUESTION 2 Under a version of direct price discrimination, the seller is able...

Discuss the concept of price discrimination. What are the types of price discrimination? Why do certain...

Discuss the concept of price discrimination. What are the types of price discrimination? Why do certain firms with market power use price discrimination? Any real-life example of firms practicing price discrimination.

Price Discrimination You are a successful biochemist, owner and director of the pharmaceutical laboratory. Suppose the...

Price Discrimination You are a successful biochemist, owner and director of the pharmaceutical laboratory. Suppose the government granted you a patent for a medicine that you created from the petals of a flower. According to a market study, you have identified the most promising buyers in the Country A and Country B markets. According to estimates, the demands for your product would be: In Country A: P = 50 - 0.5q In Country B: Q = 200 - 3p where...

"Price Discrimination" Does your company use price discrimination? Explain how the practice works of direct and...

"Price Discrimination" Does your company use price discrimination? Explain how the practice works of direct and indirect price discrimination works and estimate the effect of price discrimination on profits compared to charging a flat price. If your company doesn’t currently use price discrimination, are there opportunities to use this pricing technique? How would you design the scheme?

Which of the following conditions must be satisfied by a successful price discrimination scheme? Select one:...

Which of the following conditions must be satisfied by a successful price discrimination scheme? Select one: a. The seller must be able to identify each customer as having a high or low value. b. The seller must be able to prevent arbitrage between the two groups. c. None of the above

1) Who benefits from price discrimination? In order for price discrimination to work producers must be...

1) Who benefits from price discrimination? In order for price discrimination to work producers must be able to do what? 2) Describe your plan to reduce asymetric information in buying a house, car, insurance policy or choosing a college to apply to. 3) What are the benefits and shortcomings of Monopoly? Need help with these 3 questions.

Price discrimination Give a real life example (2 examples) of the third-degree price discrimination (different from...

Price discrimination Give a real life example (2 examples) of the third-degree price discrimination (different from anyexamples in the lecture or in textbook). How the consumers are selected into one or another price group. Explain, which of the group of the consumers has a more elastic demand, and why.

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14-1 Price Discrimination Does your company price discriminate? Explain how the practice works (direct or indirect)...

14-1 Price Discrimination Does your company price discriminate? Explain how the practice works (direct or indirect) and estimate the profit consequences of price discrimination relative to charging a single, uniform price. If your company doesn’t currently price discriminate, are there opportunities to do so? How would you design the price discrimination? Estimate the profit consequences. Uses numbers.

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