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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