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(A, B) At least two ways a firm can achieve price discrimination for the same product or market. Give a concrete example of the product and how the price discrimination would be effective. Read again: two methods of price discrimination for the same product: example movie theatres which charge less for afternoon matinees however also offer senior discounts all day and evenings.
(C) What is the goal of all price discrimination?
(D) What is a “tie in”?
(E) Is price discrimination legal in most states?
Industry structure is often examine through computing the 4-company Concentration Ratio. Assume you have an industry with 20 firms and the CR is 30 percent.
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In the mid-1990's fashion trends toward loose-fitting, casual cotton clothing drove up the price of domestic cotton. In response, existing domestic farmers switched over from growing soybeans and rice to growing cotton. What best explains the effect ..
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