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(Price Discrimination)
A. Indicate the types of price discrimination for the cases below. Based on the above examples, explain the difference among these types of price discrimination.
Case A1. Gino Pizza offers a lunch special: 5.59$ for a grilled chicken sandwich, a bottle of soft drink, and a small bag of potato chips. If you buy them individually, their prices are: 4.89$ for chicken sandwich, 1.50$ for soft drink, and 0.99$ for potato chips.
Case A2. Guggenheim Museum charges its customers in the following way: adults 18$, seniors (above 65) 15$, and children (under 12) free.
Case A3. T-Mobile offers disimilar cell phone service plans targeting at disimilarconsumer groups, such as 39.99$ for 300 min, 49.99$ for 600 min and 59.99$ for 1000 min.
Suppose that historically, the proportion of people who trade in their old car to a car dealer when purchasing a new car is 48%. Over the previous 6 months, in a sample of 115 new-
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MC=25+30Q-9Q^2 fixed cost=55 find total cost avarage cost variable cost
You can buy as many drinks as you want at $1 each. You can also buy as many chocolate bars as you want at $2 each. You have $5 to spend. You must buy whole bars and drinks, that is
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Explain how getting right price affected the market for promoting development. Getting prices right implies: • Abolishing price controls as well as subsides on fundamentals.
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