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 65 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?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

No drugs are available to relieve parathyroid disease. Parathyroid disease is caused by a parathyroid tumor, and it needs to be removed by surgery.

Because the leg muscles of children with muscular dystrophy are weak, they must perform the Gowers’ Because the leg muscles of children with muscular dystrophy are weak, they must perform the Gowers’
International Television Viewing Rates in Childhood In most developed countries, children watch TV International Television Viewing Rates in Childhood In most developed countries, children watch TV
When does old age begin? And what activities are appropriate for the elderly? From this photo that I ... When does old age begin? And what activities are appropriate for the elderly? From this photo that I ...
Stretching the muscles of the hip and lower back with diagonal adduction of the bent leg. Stretching the muscles of the hip and lower back with diagonal adduction of the bent leg.
Joint movements of the lower leg for recovery after strenuous exercise. Joint movements of the lower leg for recovery after strenuous exercise.
Preschool children played with same-sex or opposite-sex playmates Preschool children played with same-sex or opposite-sex playmates
Video: Simple Diffusion - gases and nonpolar compounds transport

For a complete list of videos, visit our video library