Exam 13: Direct Price Discrimination Indirect Price Discrimination

Use the following table to answer questions 23 - 26 Assume the cost of producing the goods is zero -Suppose the monopolist only sold the goods separately.What price will the monopolist charge for Good 2 to maximize revenues for good 2?

It is illegal for business to price discriminate when selling goods to other businesses unless

The goal of price discrimination is to

The practice of buying a firm's good in one market at a low price and selling it in another market for a higher price in order to profit from the price difference is known as

Use the following table to answer questions 15 - 18 Assume the cost of producing the goods is zero -Suppose the monopolist only sold the goods separately.What prices will the monopolist charge for Good 2 to maximize revenues for good 1?

When deciding what price to charge customers,a firm may choose to charge different prices based on customers'

Chinese restaurants that charge one price per customer for their buffet is an example of

In theory,price discrimination

When a firm practices perfect price discrimination,

A firm practicing direct price discrimination will charge a higher price to

A firm charging different customers different prices for the same product is engaged in:

Firms can practice indirect price discrimination by

Restaurant provide discounts to seniors because

All these are motivations for tie-in-sales except,

Firms choose to price discriminate

(pg 168)Charging prices closer to what consumers are willing to pay for a good

For a firm to maximize total profits through price discrimination,it should

When grocery stores offer discount coupons on Sunday papers,it is trying to

Use the following table to answer questions 23 - 26 Assume the cost of producing the goods is zero -Suppose the monopolist only sold the goods separately.What price will the monopolist charge for Good 1 to maximize revenues for good 1?

Airlines charge a ____________ to business travelers compared to leisure travelers because business travelers have a ____________ demand than leisure travelers.