Write your answers on separate sheets of paper. Please include: your name your r
ID: 1200514 • Letter: W
Question
Write your answers on separate sheets of paper. Please include: your name your recitation teacher's name day and time of your recitation Show that if a firm is a natural monopoly, a government policy that forces marginal cost pricing will result in for the firm. What type of discrimination is depicted in the examples below? Please explain your answer. You can buy a bar of Dove soap for $1.50, a pack of G bars for $6, or a pack of 12 for $10. When you fly from New York to I.is Angeles, the airline charges you $200 if you buy your ticket 30 days in advance. However, the airline will charge you $100 if you buy the ticket on the day of travel. Tropicana Orange Juice issues a coupon for $1 off a carton of juice. Only consumers who bring the coupon to the store and hand it to the cashier at checkout receive the price discount.Explanation / Answer
A) SECOND DEGREE OF PRICE DISCRIMINATION BECAUSE OVER HERE QUANTITY IS THE BASIS FOR DISCRIMINATION.
B) THIRD DEGREE OF PRICE DISCRIMINATION BASED ON THE DIFFERENT INCOME LEVELS OR DEMOGRAPHY TO CAPTURE MAXIMUM CUSTOMERS.
C) IT IS AGAIN A SECOND DEGREE OF PRICE DISCRIMINATION TO OFFER DIFFERENT PRICES TO DIFFERENT CUSTOMERS WITHOUT LOSING THE PRICE SENSITIVE CUSTOMERS.
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