Price discrimination to maximize profits

Assignment Help Microeconomics
Reference no: EM1375756

How does knowledge of value elasticity between different groups of consumers or for several products enable managers to price discriminate, i.e. change different prices for these groups? Why is price discrimination beneficial to an organization?

Reference no: EM1375756

Questions Cloud

Expenditure versus income approach to gdp : Differentiate the expenditure versus income approach to GDP and discuss why are the results the same? What are some of the drawbacks of using GDP while doing international comparisons among countries?
Determining optimal price : Imagine that you are the manager of a gas station and your goal is to maximize profits. According to your past experience, the elasticity of demand by Texans for a car wash is -4,
Compute the quality productivity ratio : Airphone, Corporation Produces cellular telephones at a processing cost of $47 each unit. The firm manufactures an average of 250 phones per week and has a yield of 87 percent good-quality phones
Question about law of demand : The law of demand says that the price and quantity demanded are inversely related. Thus, is demand curve positively or negative sloped?
Price discrimination to maximize profits : How does knowledge of value elasticity between different groups of consumers or for several products enable managers to price discriminate, change different prices for these groups?
Analysis of handgun laws : Few states in the U.S. permit citizens to openly carry handguns. People can save themselves in the case of robberies or harm by using these guns.
Defenders of communist economic systems : Defenders of Communist economic systems may point out that customers pay lower values for certain goods because government imposes a limit on what manufacturer may charge.
Compute the approximate annual rate of return on investment : Compute the approximate yearly rate of return on investment of the following cash discount terms, Compute the amount of interest income received by Husemann Corporation.
Price leadership model versus contestable markets model : An industry with twenty companies but the CR = 80 percent is called "high concentration", for a concentration ratio of 80 to 100% is viewed as high concentration.

Reviews

Write a Review

 

Microeconomics Questions & Answers

  Monopolistic competition and oligopoly

Why might some people claim that the breakfast cereal industry is monopolistically competitive but that the automobile industry is an oligopoly? In both cases, about eight to ten firms dominate the industry.

  Economics from health care perspective

What incentives does a capitates physician have to keep his patients happy? What incentive does an FFS physician have?

  Families and society changes

The major changes that have forced differences are changes in the place of women in society as more equal in terms of jobs and working, more out of wedlock births creating more single families, less stigma by society on men who do not participate ..

  Compute the opportunity costs

This question is intended to understanding of the basic Ricardian model by having you work through a problem on your own. There are two nations, Canada and United States, and two goods X and Y.

  Solving agency problems

The Wall Street Journal article reported that large hotel chains, such as Marriott, are tending to decrease the number of hotels that they franchise to outside owners and raise number the chain owns and manages itself.

  Determine consumer surplus and producer surplus

The table given below are the demand and supply schedules for television sets in Venezuela, a small country that is unable to affect world prices.

  Statistically significant regression coefficient

Determine which of the following is most likely to indicate statistically significant regression coefficient? Assume the price elasticity of the supply of cheese is 0.80. If the price of cheese rises by .20 percent,

  Competitive market-profit maximizing decisions

Competitive industry, market determined price =$12, Output = 50 units, ATC = $10, Marginal cost = $15, AVC = $7-Is this firm making the right profit maximizing decision? If yes, why and if not, what should this firm do?

  Money creation and monetary policy

You have been employed to manage a small manufacturing facility which has cost and production data given in the table listed below.

  Shifts in demand curve

What are some of the ways these curves shift and what is the corresponding change to the point of equilibrium?

  Determine discount rate in the banking system

Third National Bank is fully loaned up with reserves of $20,000 and demand deposits is similar to $100,000. The reserve ratio is 20 percent.

  Determining monoply market structure

The water company is privately owned and is the only water company in town. It is licensed and franchised by city for a 10 - year term, just renewed.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd