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Question 2
(a) what is
(b) Determine the conditions for price discrimination to be effective.
Step by step
Solved in 2 steps
- (1) what is an example of price discrimination that you have experienced ? is this price diesccrimination beneficial to consumers ? why yes or why no?Under what circumstances should the government permit price discrimination? Also list a few items that have low utility and low pricesa. Complete the table below picture attached. b. What conditions should exist for price discrimination
- Price Discrimination à what does it mean? Who does this practice? How and why? Give suitable examples in this regardWhich 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.(a) U.S. pharmaceutical companies charge different prices for prescription drugs to buyers in different nations, depending on elasticity of demand and government-imposed price ceilings. Is this acceptable? (b) Do you agree that price discrimination is legal?
- What is price discrimination and when does it work?(c) Airlines practice price discrimination by charging leisure travelers and business travelers different prices. Why do you think by charging different prices; the airline companies will maximize their profits? Discuss briefly.what are some pricing tactics used by companies? What form of price discriminations might a company use?
- Question: Discuss the concept of price discrimination and provide examples of industries where it is commonly used.Please Dont use AI tool.Exercise A.2 Explain why monopoly means less social welfare. Is there any kind of price discrimination that does not generate loss of social welfare? Graphically represent the two situations.DN1(b, c) Amtrak has a monopoly on rail travel in the U.S. It uses price discrimination to offer a discounted price for adults who are currently enrolled students. The marginal cost per train ticket from Baltimore to New York is 100. The demand for regular tickets is P=1000-5Q and the demand for student tickets is P-500-Q. b. Find the monopoly price and quantity for regular adult tickets? c. Find the monopoly price and quantity for discounted student tickets.