Practicing price discrimination

Assignment Help Business Economics

Reference no: EM131196619

In 2011, the New York Times charged $828 to receive the newspaper delivered to your home every day for a year. Journalist Timothy Noah discovered, however, that when he called up the newspaper and threatened to end his subscription, he was offered a 50 percent discount. He became convinced that anyone who called up and threatened to end his or her subscription would be offered the same discount. Briefly explain whether the New York Times is practicing price discrimination.

Reference no: EM131196619

Questions Cloud

Indebted to the young men and women in the military : We are deeply indebted to the young men and women in the military who choose to serve and risk their lives for their country. All of us benefit from their sacrifices. Now, the question is: what motivates and incentivizes soldiers to risk their lives?..

Payment system create the right incentives : The typical way that authors get paid for writing a book is via a royalty arrangement. For every book sold, the author gets a certain percentage, something like 15% of the list price on hardcover sales and 10% for paperback. How does this payment sys..

About how his children would treat him in his old age : King Lear was worried about how his children would treat him in his old age. Much to his regret, he discovered that children do not always deliver what they promise. In addition to love and respect, children are also motivated by the possibility of a..

Market demand is equal to market supply : In quarter 5 the demand is 8,472,091 units and supply is 8,687,459 units at equilibrium. In quarter 6 supply inccreased to 9,593,212 and demand to 8,725,230. Is the market getting closer to short-run equilibrium where market demand is equal to market..

Practicing price discrimination : In 2011, the New York Times charged $828 to receive the newspaper delivered to your home every day for a year. He became convinced that anyone who called up and threatened to end his or her subscription would be offered the same discount. Briefly exp..

Achieve the sales goal : During a recession the manager for Best Buys wants to increase sales volumes of both flat screen TVs and DVD players to help that department reach its sales goal; How could the manager achieve the sales goals for these two products and how would that..

What is the profit at the monopolistic equilibrium : A monopolist faces the following demand function and total cost function. P=100-2Q, TC=20+10Q+Q^2. What is the profit at the monopolistic equilibrium? Show your work.

How many of these are produced by government : Make a list of products and services which are least satisfactory and have shown the least improvement over time. How many of these are produced by government? Do you agree or disagree with this statement by Milton Friedman: "Postal serive, elementar..

Creates a variety of furniture pieces for the dining room : Wellstone is a furniture manufacturer for the residential market that creates a variety of furniture pieces for the dining room, living room and bedroom. One of the company’s strategies has been to hold prices fixed at their current levels. At a mana..

User Account

All Pages