What is price discrimination? Give examples of price discrimination
What will be an ideal response?
Price discrimination is the practice of selling different units of a good or service for different prices. For example, airlines' customers pay different prices for the same trip, pizzerias charge a lower price for the second pizza bought, or Microsoft charges a lower than regular price when it sells its Office software to students.
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The phone bill for a company consists of both fixed and variable costs. Refer to the four-month data below and apply the high-low method to answer the question. Minutes Total Bill January 480 $4000 February 200 $2700 March 170 $2640 April 320 $2855 What is the fixed portion of the total cost?
Under the perfectly competitive market structure, the demand curve of an individual firm is
A) perfectly inelastic. B) downward sloping. C) relatively inelastic. D) perfectly elastic.
In order to avoid problems involved with calculating percentage changes over a wide range, economists use the base or midpoint formula to calculate percentage changes when measuring the price elasticity of demand
a. True b. False Indicate whether the statement is true or false
Since 1970, the poverty rate has largely fluctuated between:
A. 5 and 10 percent. B. 10 and 15 percent. C. 15 and 25 percent. D. 0 and 5 percent.