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Author Question: Why do price discriminating firms often offer lower prices to children and elderly? (Read 43 times)

SO00

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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
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Marked as best answer by SO00 on Apr 19, 2019

Moriaki

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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.
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SO00

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Reply #2 on: Apr 19, 2019
Thank you!


Moriaki

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Reply #3 on: Apr 19, 2019
Always glad to help...


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