Mar 20, 2017 · There are generally three conditions that must be met for price discrimination to be successful: The firms must be able to control supply, the firms must prevent the resale of products from one buyer to another, and there must be a difference in price elasticities in the different markets for the product. Reference
Oct 14, 2017 · Correct Answer: Bundling complementary products to attract additional sales. Question 14 When demand is elastic, the marginal revenue resulting from a decrease in price is: Correct Answer: positive. Question 15 "Personalized pricing" and "group pricing" are examples of: Correct Answer: first-degree and third-degree price discrimination, respectively. Question 16 …
Mar 09, 2015 · It makes economic sense to charge the same prices across countries. A necessary condition for profitable price discrimination is different price elasticities of demand in different countries. The price elasticity of demand is a measure of the responsiveness of demand for a product to change in price.
Which of the following is a necessary condition for price discrimination to be profitable? Select one or more: a. All consumers must have an identical demand for the product. b. Groups of consumers with different demand elasticities must be easily distinguishable. c. The market demand for the product must be highly elastic. d.
Which of the following is a necessary condition for price discrimination? The seller must be able to divide the markets according to the different price elasticities of demand.
The correct answer is b. The seller must be able to distinguish among customers who would be willing to pay different prices.
Which of the following correctly describes price discrimination? Selling the same product to different people for different prices.
Answer: Price discrimination is possible only when the buyers from different sub-markets are willing to purchase the same product at different prices. If the elasticity of demand is the same, then the effect of the price change on the buyer will be identical too. Therefore, the correct answer is option b.
The correct answer is D. Charging the same price to everyone for a good or service is not price discrimination.
The following conditions must be met for price discrimination to be successful: Firms must be able to control supply. Firms must prevent the resale of products from one buyer to another. There must be a difference in price elasticities in the different markets for the product.Feb 2, 2022
Examples of price discrimination include issuing coupons, applying specific discounts (e.g., age discounts), and creating loyalty programs. One example of price discrimination can be seen in the airline industry.
THE FIRST-DEGREE PRICE DISCRIMINATION In the first degree, you allow customers to pay for the product as much as they want. A textbook example of first-degree price discrimination is eBay. Customers are bidding on product prices, and the more they are willing to pay, the higher the final cost of the product is.Mar 1, 2021
Which of the following are key results of price discrimination? Profits increase and consumer surplus decreases.
sellers engage in price discrimination when they charge different prices to different consumers for the same good. it is profit-maximizing to charge higher prices to low-elasticity consumers and lower prices to higher-elasticity ones.
-In order to price discriminate, firms must be in the monopoly, oligopoly, or monopolistic competition market structure. - Because rather than being price-takers, firms in these market structures have some degree of market power, which gives them the ability to charge more than one price.
d. Price discrimination is the business practice of selling the same good at different prices to different customers. Charging adults and children different prices for the same movie is an example of price discrimination.