Suppose you own a business with the potential for price discrimination in a service it provides....

Suppose you own a business with the potential for price discrimination in a service it provides. Describe the type of service. What groups would you divide your customers into? Based on their different elasticities of demand, which groups would you give a discount to in order to maximize profits?

Expert Solution

Rahul Sunny answered 1 year ago

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...

Explain the practise of price discrimination and discuss whether you think that price discrimination is good...

Explain the practise of price discrimination and discuss whether you think that price discrimination is good or bad for the economy?

CONTRACT ANAYLSIS I - Business MGMT. You own a furniture making business. It thrives well, provides...

CONTRACT ANAYLSIS I - Business MGMT. You own a furniture making business. It thrives well, provides for your family and you enjoy your labor of love. A busload of tourists arrive and some of the travelers stop into your shop. They inquire about your work, product and availability. After exchanging information with one interested traveler, you go back to your work. He had mentioned that he wanted you to make him a bedroom set, including a dresser, armoire, nightstand and...

What is the case when a single price becomes a price discrimination strategy? Describe your own...

What is the case when a single price becomes a price discrimination strategy? Describe your own experience.

Explain a time you encountered non-uniform pricing, or price discrimination. Identify the type of price discrimination...

Explain a time you encountered non-uniform pricing, or price discrimination. Identify the type of price discrimination it was. Using the criteria necessary for price discrimination, evaluate how well that good fit price discrimination. Finally, evaluate the effect such price discrimination has on you and society. Your journal entry must be at least 200 words in length. No references or citations are necessary.

Give an example of price discrimination from your own experience. Is this an example of perfect...

Give an example of price discrimination from your own experience. Is this an example of perfect price discrimination, group price discrimination, or nonlinear price discrimination?

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.

Suppose a monopolist is practicing price discrimination in the sale of a product by charging different...

Suppose a monopolist is practicing price discrimination in the sale of a product by charging different prices in two separate markets. Suppose the demand curves are P1=300-Q1 P2=250-Q2 and you are informed that the cost function is TC=6(Q1+Q2). How much should be sold in the two markets to maximize profits? What are the prices charged? How much profit is lost if price discrimination is made illegal?

Price discrimination is designed to:

SUBJECT: GAME THEORY QUESTION: Price discrimination is designed to; A) Extract surplus from consumers who are most willing to pay for the good B) Raise profits by charging all consumers more than they would without price discrimination. C) Raise profits by allowing some consumer to pay less and therefore become more loyal. D) None of the above.

Suppose you run an independent trucking business. You own a tractor trailer for hire.

Independent Trucking AnalysisSuppose you run an independent trucking business. You own a tractor trailer for hire. You work with a broker who offers you business to transport various cargos from one location to another. You can choose to take a particular job at the price offered or not. The broker works with many similar truckers.Independent trucking is an industry that can be considered perfectly competitive. Draw a graph showing market supply, market demand, and equilibrium price and quantity. Draw a...

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