Which type of price discrimination-perfect-group-nonlinear

Assignment Help Business Economics

Reference no: EM13831863

4.5 Grocery store chain often set consumer-specific price by issuing frequent –buyer cards to willing customers and collecting information about their purchases. Grocery chains can use that data to offer customized discount coupons to individuals.

a. Which type of price discrimination –perfect, group, or nonlinear- are these personalized discounts?

b. How should a grocery store use past-purchase data to set individualized prices maximize its profit? (Hint: refer to a customer’s price elasticity of demand.)

Reference no: EM13831863

Questions Cloud

Existence of non pecuniary benefit associated with education : The existence of non pecuniary benefits associated with education causes estimated rates of return to education to _______ the actual rate of return for a typical individual.

Flexible exchange rate regime in open macroeconomic model : suppose the domestic and foreign interest rates are both initially equal to 4%. Now suppose the foreign interest rate rises to 6%. Explain what effect this will have on the exchange rate. Also explain what must occur for the interest parity condition..

Label all curves and clearly label initial-final equilibrium : using the ZZ/Y and NX graphs, illustrate graphically and explain what effect a reduction in taxes will have on output, exports, imports, and net exports. Clearly label all curves and clearly label the initial and final equilibrium.

About the current versus future expected exchange rate : Suppose the interest parity condition holds and that the domestic interest rate is greater than the foreign interest rate. What does this imply about the current versus future expected exchange rate? Explain.

Which type of price discrimination-perfect-group-nonlinear : 4.5 Grocery store chain often set consumer-specific price by issuing frequent –buyer cards to willing customers and collecting information about their purchases. Grocery chains can use that data to offer customized discount coupons to individuals. Wh..

Quantity effect of a specific tax : A regulator plans to impose a specific tax on a previously unregulated monopolist. Before imposing the tax, they want to know what the change in quantity produced will be from such a tax. The proposed specific tax is τ = 10 and the following are the ..

Two-part tariff : A firm faces two consumers with the following demand functions: p1(q1) = 400 − q1. p2(q2) = 300 − q2. The firm’s constant marginal cost of production is, c = 50. The firm may charge an access fee and per unit price (that the consumers can choose not ..

Lerner index : A firm sells 10 units at a price of 20. The marginal cost of production for this firm is MC(q)=5+q. What is this firm’s Lerner Index?

Life cycle cost analysis-user benefit resulting from project : Life Cycle Cost Analysis (LCCA) does not include "User benefits resulting from project" or "Externalities resulting from project". Unlike analysis based on net annual worth, net present worth analysis does NOT require equal analysis periods for diffe..

User Account

All Pages