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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