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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.
Mr. M enters into a contract with Mr. R under which R agrees to build a model railroad for $200. The value of the model railroad to M is $300. Expecting that the model railroad wil
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In brief, the price of anything is based on comparative benefit. If Adam makes clocks better and cheaper than Bill, all clock production should go to Adam.
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