Explain how prices should be set

Assignment Help Macroeconomics

Reference no: EM133336584

Questions:

(i) Consider the technique of direct price discrimination via which dierent prices are set for exogenously segmented sectors of demand. Explain:

(a) how prices should be set; (b) what a supplier needs to know to do this; and (c) what constraints are faced in the use of this technique.

(ii) Describe a real-world example of this price discrimination strategy, and relate it to your three explanations (a), (b), and (c) in part (i)

- Part (i): How relevant is the theory to the question? How accurate and appropriate is the statement and explanation of the theory?

- Part (ii): How relevant is the example? Is it a real rather than hypothetical example, documented with facts? How careful is the explanation of these facts? Does the example go beyond what a casual observer would know? How good is the quality of the analysis? Is it well connected to the theory in part (A)? Taking a business or other perspective, how interesting are the case, implications, and conclusions?

Reference no: EM133336584

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