How a firm check its advertising-to-sales ratio is not high

Reference no: EM13902639

How can a firm check that its advertising-to-sales ratio is not too high or too low? What information does it need?Price discrimination requires the ability to sort cus- tomers and the ability to prevent arbitrage. Explain how the following can function as price discrimination schemes and discuss both sorting and arbitrage:

a. Requiring airline travelers to spend at least one Saturday night away from home to qualify for a low fare.

b. Insisting on delivering cement to buyers and basing prices on buyers' locations.

c. Selling food processors along with coupons that can be sent to the manufacturer for a $10 rebate.

d. Offering temporary price cuts on bathroom tissue.

e. Charging high-income patients more than low- income patients for plastic surgery.

Reference no: EM13902639

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