Business, 28.07.2021 01:50 ben3898

A firm that can effectively price discriminate will charge a higher price to Group of answer choices customers who have the more inelastic demand for the product. buyers who belong to the largest market segment. customers who have the more elastic demand for the product. buyers who are members of the smallest market segment.

Answers: 1

Show answers

Answers

Answer from: kevin1015wangoudf1t

customers who have the more inelastic demand for the product.

Explanation:

Price discrimination is when the same product is sold at different prices to customers in different markets

types of price discrimination

1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.

2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.

3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students

Requirements to practice successful price discrimination

1.The firm must have market power. If the firm does not have market power and attempts to price discriminate they would lose customers

2.The firm must have different elasticities of demand for their product in different markets

3.The firm must be able to segment the market for their products

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

If a firm charges the higher price in the market where customers have a more inelastic demand, the fall in quantity demanded would be less than the increase in price. As a result, total revenue would increase

If on the other hand, the higher price is charged in the market with the more elastic demand, the fall in quantity demanded would exceed the price increase. As a result, total revenue would fall.

Answer from: Quest

answer; maintain a safe following distance;

Answer from: Quest

answer; /// i believe that the correct answer is (b) money set aside for emergency repairs;

Another question on Business

Business, 21.06.2019 21:00

Accublade castings inc. casts blades for turbine engines. within the casting department, alloy is first melted in a crucible, then poured into molds to produce the castings. on may 1, there were 230 pounds of alloy in process, which were 60% complete as to conversion. the work in process balance for these 230 pounds was $32,844, determined as follows: exercises during may, the casting department was charged $350,000 for 2,500 pounds of alloy and $19,840 for direct labor. factory overhead is applied to the department at a rate of 150% of direct labor. the department transferred out 2,530 pounds of finished castings to the machining department. the may 31 inventory in process was 44% complete as to conversion. prepare the following may journal entries for the casting department: the materials charged to production the conversion costs charged to production the completed production transferred to the machining department determine the work in process"casting department may 31 balance.

Answers: 1

Answer

Business, 22.06.2019 04:40

Select the correct text in the passage.which sentences in the given passage explains the limitations of monetary policies? monetary policies - limitationsmonetary policies are set by the central bank to bring about growth in the economy.de can be achieved these policiesw at anden i sca poit would be fair to say that changes in the economy cannot be brought about instantly by monetary po des.monetary policy can only influence not control, economic growththe monetary policy makers do work on sining the perfect balance between demand and supply of money in the economy

Answers: 3

Answer

Business, 22.06.2019 06:10

P11.2a (lo 2, 4) fechter corporation had the following stockholders’ equity accounts on january 1, 2020: common stock ($5 par) $500,000, paid-in capital in excess of par—common stock $200,000, and retained earnings $100,000. in 2020, the company had the following treasury stock transactions. journalize and post treasury stock transactions, and prepare stockholders’ equity section. mar. 1 purchased 5,000 shares at $8 per share. june 1 sold 1,000 shares at $12 per share. sept. 1 sold 2,000 shares at $10 per share. dec. 1 sold 1,000 shares at $7 per share. fechter corporation uses the cost method of accounting for treasury stock. in 2020, the company reported net income of $30,000. instructions a. journalize the treasury stock transactions, and prepare the closing entry at december 31, 2020, for net income. b. open accounts for (1) paid-in capital from treasury stock, (2) treasury stock, and (3) retained earnings. (post to t-accounts.) c. prepare the stockholders’ equity section for fechter corporation at december 31, 2020.

Answers: 1

Answer

Business, 22.06.2019 09:30

Oliver's company is planning the launch of their hybrid cars. the company has included "never-before-seen" product benefits in the hybrid cars. which type of advertising should oliver's company use for the new cars?

Answers: 1

Answer

You know the right answer?

A firm that can effectively price discriminate will charge a higher price to Group of answer choices...

Questions