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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 thirddegree 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
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 thirddegree 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