Business 620 Critical Thinking Six Salvatore’ s Chapter 12: a) Discussion Questions: 7, 8,11, and 13. b) Problems: 5,12 and spreadsheet problem 1( p. 523). Froeb et al.’ s Chapter 14: a) Individual problems: 14 – 1 and 14 – 4. Salvatore’ s Chapter 13: a) Discussion Questions: 8 and 10. b) Problems: 12, 13, and 15.
Discussion Question 7: Quantity discounts are not a form of price discrimination because the firm saves on handling large orders? True or false? Explain
Discussion Question 8
( a) Why are first- and second-degree price discrimination less common than third- degree price discrimination?( b) Are lower airline fares at midweek an example of third-degree price discrimination?( c) Under what conditions would it not be useful to charge different prices in different markets( i. e., practice third-degree price discrimination) even if possible?
Discussion Question 11: How is the transfer price of an intermediate product determined when:
a) There is no external market for the intermediate product
b) A perfectly competitive external market for the intermediate product exists