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Author Question: Discuss the practical difficulties associated with practicing perfect price discrimination. What ... (Read 28 times)

bobypop

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on: Jun 29, 2018
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?


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soda0602

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Reply #1 on: Jun 29, 2018
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

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Reply 2 on: Jun 29, 2018
Excellent

gcook

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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