In order to be a successful price discriminator, a provider must have a degree of market power (depicted by a downward-sloping demand curve) and meet what other condition(s)?
a. Markets must be segmentable, identifying differences in ability-to-pay.
b. Demand for services must be relatively price elastic.
c. Profitable service expansion opportunities must be limited.
d. Customers cannot know that different prices are being charged.
e. The provider must have excess capacity to accommodate the extra business.
a. Markets must be segmentable, identifying differences in ability-to-pay.
You might also like to view...
In the United States, the smallest source of expenditure on healthcare is
A) government expenditure. B) private insurance expenditure. C) out-of-pocket expenditure. D) unknown.
In the above figure, the relationship between costs indicates that the distance between curves
A) A and B is equal to the fixed cost. B) A and B is equal to the variable cost. C) B and C is equal to the fixed cost. D) B and C is equal to the average total cost.
The marginal product of capital is the ________ curve for capital and the marginal product of labor is the ________ curve for labor
A) demand; demand B) demand; supply C) supply; demand D) supply; supply
One way that countries can settle international payment obligations is
A) to run a balance of payments surplus. B) to run a balance of payments deficit. C) to use special drawing rights. D) to stop trading.