This topic contains a solution. Click here to go to the answer

Author Question: Discuss the practical difficulties associated with practicing perfect price discrimination. What ... (Read 63 times)

bobypop

  • Hero Member
  • *****
  • Posts: 539
Discuss the practical difficulties associated with practicing perfect price discrimination.
 
  What will be an ideal response?

Question 2

What role do households play in the market for inputs? What role do firms play?
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

soda0602

  • Sr. Member
  • ****
  • Posts: 313
Answer to Question 1

Perfect price discrimination is difficult to practice because it requires that the firm know exactly the maximum willingness to pay of each individual buyer. Firms are generally unable to get this information or acquiring it may be quite costly.

Answer to Question 2

In the market for inputs, households are the suppliers. They sell their labor services in the labor market to firms who demand labor to produce their products. Owners of land sell or rent their land to firms for production purposes. Households supply their savings to financial markets so that firms are able to buy capital.




bobypop

  • Member
  • Posts: 539
Reply 2 on: Jun 29, 2018
Gracias!


ricroger

  • Member
  • Posts: 352
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

For a complete list of videos, visit our video library