Solved by verified expert :59)
Why is it important that a firm have market power if it wishes to engage in
price discrimination?
60)
Why is it important that a firm can prevent resale of its product if it wishes
to engage in price discrimination?
61)
When an electronics company advertises on the local newspaper a 10% discount
coupon, is this an example of price discrimination? Why or why not?
62)
Why is it important that a firm have different groups of consumers with
different demand elasticities if it wishes to engage in price discrimination?
63)
If you purchased a new model of a digital camera right after it is released you
will likely pay more than if you purchase it six months after release. Why is
this an example of price discrimination on the part of the firm?
64)
Bars often offer specials on appetizers during “happy hour.” What
does the concept of price discrimination suggest about why this might be
profit-maximizing behavior?
65)
Suppose that you own a golf course that is part of a Florida resort. You
primarily serve two groups of people: local residents and tourists. Devise a
price discrimination strategy that will increase your revenues compared to a
single-pricing strategy.
66)
You own a local sub shop in a college town. You primarily serve two groups of
people: local residents (both students and other local residents) and visitors
to your town. Devise a price discrimination strategy that will increase your
revenues compared to a single-pricing strategy.
67)
As manager of the only video rental store in town, you have noticed that on
Thursday through Sunday the demand for movie rentals is much less elastic than it
is on Monday through Wednesday. If you are currently charging $3 for a
two-night rental, give an example of a pricing policy that might increase your
revenues compared to a single-pricing strategy.
