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