first- and second-degree price discrimination. When a theme park sells a 1-day a
ID: 1124239 • Letter: F
Question
first- and second-degree price discrimination.
When a theme park sells a 1-day adult pass for $110 and a 2-day adult pass for $180, and a 1-day child pass for $90 and a 2-day child pass for $150, the theme park is engaging in: second- and third-degree price discrimination. first-, second-, and third-degree price discrimination. first- and third-degree price discrimination.first- and second-degree price discrimination.
In the graph showing the revenue and cost curves for a monopolist, what is the profit-maximizing output and price?35; 7 20; 5 20; 10 35; 1
Explanation / Answer
Answer.)
Q1.) second- and third-degree price discrimination.
Under 2nd degree price discrimination, this practice creates a schedule of declining prices for different quantities. Using this strategy the company can extract some of the consumer surplus without knowing much about the individual consumer. Under 3rd degree price discrimination, The firms know broad demographics about the particular types of consumers they will supply, and charge prices such that everyone will be able to consume the product.
Q2.) 20; 10
Equilibrium quantity is achieved where MR=MC which is 20 units and equilibrium price is correspoding demand level at equilibrium quantity which is $10.
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