Give examples of block pricing, bundling, price discrimination and two-part tariffs.

What will be an ideal response?


Packing 75 toilet tissue rolls for $3.75 is an example of block pricing (as the consumer pays $0.05 per roll, instead of maybe more on an individual basis). Packing a crest toothbrush with a giant toothpaste packet is an example of bundling. Airline companies selling tickets at a cheaper price for advance booking is an example of price discrimination. Epcot center setting an entrance fee and then charging for certain rides is an example of two-part tariffs.

Economics

You might also like to view...

Other things remaining the same, which of the following is likely to cause a decrease in both the wage rate and the number of workers hired in a glass factory?

A) The introduction of labor-saving technology in the factory B) The introduction of labor-complementary technology in the factory C) A decrease in the population in the region where the factory is located D) An increase in the population in the region where the factory is located

Economics

Under a currency board regime, if domestic citizens are buying more (imports) from foreigners than they are selling to them (exports),

a. the amount of the domestic currency exchanged for the foreign currency will decrease and, thus, increase the domestic money supply. b. the amount of the domestic currency exchanged for the foreign currency will decrease and, thus, decrease the domestic money supply. c. the amount of the domestic currency exchanged for the foreign currency will increase and, thus, increase the domestic money supply. d. the amount of the domestic currency exchanged for the foreign currency will increase and, thus, decrease the domestic money supply.

Economics

f the long-term supply curve for rental units becomes more elastic, what will be one of the results of rent controls over the long run?

a. The availability of rentals will remain unchanged. b. Efficiency in the rental property market will increase. c. The number or rentals available will increase. d. Deadweight loss will increase significantly.

Economics

In 2001, Microsoft was found guilty of:

A. using anticompetitive means to maintain and broaden its "Windows" monopoly. B. monopolizing the market for word processing software. C. conspiring with Netscape and Sun to monopolize the market for Internet browsers. D. deliberately pricing Windows 95 and 98 below marginal cost to monopolize the market for operating systems for personal computers.

Economics