Match the corresponding examples of first-degree, second-degree, or third-degree price discrimination. 1. The publishers of the...

Match the corresponding examples of first-degree, second-degree, or third-degree price discrimination.

1. The publishers of the Journal of Price Discrimination charge a subscription price of $75 per year to individuals and $300 per year to libraries.

2. Ye Olde Country Club charges golfers $12 to play the first 9 holes of golf on a given day, $9 to play an additional 9 holes, and $6 to play 9 more holes.

3. The U.S. government auctions off leases on tracts of land in the Gulf of Mexico. Oil companies bid for the right to explore each tract of land and to extract oil.

Solutions

Expert Solution

First degree price discrimination refers to a type in which monopolist charge the highest possible price from different consumers on the basis of their willingness to pay. This discrimination cause consumer surplus to be zero.

Second degree price discrimination is also known as block pricing because under this monopolist charge different price from different consumer according to the quantity they purchased.

Third degree price discrimination refers to the type in which monopolist divide the customers according to specific characterstics and then offer different price from each division.

1. The publishers of the Journal of Price Discrimination charge a subscription price of $75 per year to individuals and $300 per year to libraries. Here consumer is divided into two: individuals and libraries so it is a type of Third degree price discrimination.

2. Ye Olde Country Club charges golfers $12 to play the first 9 holes of golf on a given day, $9 to play an additional 9 holes, and $6 to play 9 more holes. Here different blocks are made on the basis of the quantity so it is a type of Second degree price discrimination.

3. The U.S. government auctions off leases on tracts of land in the Gulf of Mexico. Oil companies bid for the right to explore each tract of land and to extract oil. Here through auction each consumer will bid till the bid exceeds its willingness to pay so at last government charging according to willingness to pay so it is a type of First degree price discrimination.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

What is second degree price discrimination and third degree price discrimination? Explain with examples.

4. Define first degree price discrimination, second degree price discrimination, and third degree price discrimination. Provide...

4. Define first degree price discrimination, second degree price discrimination, and third degree price discrimination. Provide an example of each.

Provide an example of price discrimination and classify it as first-degree, second-degree or third-degree price discrimination.

Provide an example of price discrimination and classify it as first-degree, second-degree or third-degree price discrimination

Please answer First, Second and third degree price discrimination with business world examples

4. What is second degree price discrimination and third degree price discrimination? Explain with examples. 5....

4. What is second degree price discrimination and third degree price discrimination? Explain with examples. 5. Compare the three types of market structure: perfect competition, monopoly and monopolistic competition. 6. Explain Giffen goods and Veblen goods and their similarities and differences in terms of price and income elasticity of demand. 7. Explain the cobweb model. 8. Explain how the elasticity of demand affects the revenue of the seller. 9. Explain the relationship between the marginal cost curve of an individual...

Define price discrimination. Explain the difference between first-degree and third-degree price discrimination with two examples of...

Define price discrimination. Explain the difference between first-degree and third-degree price discrimination with two examples of each. Your answer will not be complete without two examples of each. Provide your answer here. DO NOT TRY TO COPY/PASTE YOUR ANSWER.

Describe the differences between price non-discrimination and (i) first degree price discrimination, (ii) second degree price...

Describe the differences between price non-discrimination and (i) first degree price discrimination, (ii) second degree price discrimination, (iii) third degree price discrimination, and (iv) peak load pricing. Provide a supporting example in each of these four cases. Note the market structure conditions in which each can apply, and explain the expected welfare outcomes in each case.

Please explain the the characteristics and welfare effects of a) first-degree price discrimination. b) third-degree price...

Please explain the the characteristics and welfare effects of a) first-degree price discrimination. b) third-degree price discrimination.

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.

Subjects