Suppose that you own a golf course that is part of a Florida resort. You primarily serve two groups of people: local residents and tourists. Devise a price discrimination strategy that will increase your revenues compared to a single-pricing strategy.
What will be an ideal response?
Local residents can be given a free membership in the golf course if they show proof that they are from the area. Prices for these members (who probably have a relatively elastic demand since they can play golf all year) could be set lower than for tourists (who have an inelastic demand for golf since that is probably why they came to Florida in the winter). This would encourage the local residents to play golf all year round. Another possibility is that prices could be set higher during the tourist season than during the off-season.
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The firm's variable cost include costs that
a. change as the price of the good changes b. change as the firm's output changes c. can never be changed d. can only be changed in the long run e. change with economies of scale and remain unchanged with diseconomies of scale
When comparing industries, a monopolistically competitive industry is less competitive than an oligopoly.
Answer the following statement true (T) or false (F)
Which of the following slogans use customer loyalty to sell its product?
a. You know these hamburgers are good, they're Wendy's. b. Wendy's Hamburgers, a new type of burger c. Treat yourself to the best burgers, eat at Wendy's d. Get the most for your money, eat Wendy's Hamburgers.
If a firm has two production alternatives and the price of one decreases, this will cause the other good's
A. supply curve to shift to the left. B. supply curve to shift to the right. C. demand curve to shift to the right. D. demand curve to shift to the left.