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As the owner and manager of a store selling blue jeans named "701 Jeans", you are actively seeking new pricing strategies that will increase profits. You only sell one style of jeans.
Question a) Consider that you are operating in a perfectly competitive market. How would you determine the single price of your jeans?
Now assume that you have market power in the jeans industry.
Question b) Describe the economic concept of first degree price discrimination? Give an example of how you could use this tactic in your store to increase profits and explain.
Question c) Describe the economic concept of second degree price discrimination? Give an example of how you could use this tactic in your store to increase profits and explain.
Question d) Describe the economic concept of third degree price discrimination? Give an example of how you could use this tactic in your store to increase profits and explain.
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