This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Why do price discriminating firms often offer lower prices to children and elderly? (Read 66 times)

SO00

  • Hero Member
  • *****
  • Posts: 568
on: Apr 19, 2019

Question 1

A monopolist who has a horizontal 
ATC schedule and perfectly price discriminates


◦ leaves buyers a decreased but still positive amount of consumer surplus.
◦ increases the amount of consumer surplus that is lost to the buyers and not gained by the monopolist.
◦ appropriates all consumer surplus as profit.
◦ does not change the amount of consumer surplus that buyers had before the monopolist perfectly price discriminated.

Question 2

Why do price discriminating firms often offer lower prices to children and elderly?


◦ They have a lower willingness to pay than other consumers.
◦ Their demand for goods and services tends to be less elastic than other consumers.
◦ Such a strategy lowers the costs of the firm.
◦ These firms are more interested in equity than profit maximizing.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by SO00 on Apr 19, 2019

Moriaki

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly


SO00

  • Hero Member
  • *****
  • Posts: 568
Reply #2 on: Apr 19, 2019
Thank you!


Moriaki

  • Sr. Member
  • ****
  • Posts: 341
Reply #3 on: Apr 19, 2019
Always glad to help...


« previous next »
 

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

The original Magdeburg hemispheres (lower left) used to demonstrate Otto von Guericke's vacuum The original Magdeburg hemispheres (lower left) used to demonstrate Otto von Guericke's vacuum
Concept of Health by Children Concept of Health by Children
Major Findings of the High Scope Preschool Study High Scope participants showed better academic per Major Findings of the High Scope Preschool Study High Scope participants showed better academic per
Reading and talking about a picture book is one effective way to improve children’s language ... Reading and talking about a picture book is one effective way to improve children’s language ...
Children and Their Development, Third Canadian Edition Children and Their Development, Third Canadian Edition
Children's behaviour rating scores on measures of aggression and anxiety Children's behaviour rating scores on measures of aggression and anxiety
Video: Supine Position

For a complete list of videos, visit our video library