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2 years ago

price discrimination will occur when a firm can segment its existing and potential customers into different groups based on:

Business

1 answer:

lana [24]2 years ago

8 0

Customers whose demand has a higher degree of price elasticity will pay less.

<h3>How Does Price Discrimination Occur and types of Price Discrimination?</h3>

Price discrimination is a marketing tactic where sellers charge clients various prices for the same good or service depending on what they believe will win the customer over. A merchant that practices pure price discrimination will impose the highest price possible on each customer. The more typical types of price discrimination involve the vendor classifying clients into groups according to particular characteristics and charging each group a different price.

There are three types of price discrimination:

First-Degree Price Discrimination: when a company charges the highest price per unit of consumption.

Second-Degree Price Discrimination: when a business offers discounts for large orders or imposes various prices on customers depending on how much they eat.

Third-Degree Price Discrimination: when a business charges varied prices to various customer segments.

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ou are a producer of cold medicine. Last month, a flood at your factory eliminated 50% of your firm’s production capability. At

Scilla [17]

Answer:

The flood shifts the supply to the left.

The increase in healthcare costs shifts the supply curve to the left.

Explanation:

An increase in the cost of production inputs (increase in health costs) or a decrease in the availability of resources (the flood reduced the firm's production capability), will shift the supply curve to the left.

A leftward shift of the supply curve will lower the quantity supplied and will increase the price of the good at every level of demand.

6 0

3 years ago

The fixed costs of WeBuy&Sell.com, an e-commerce website, make up about 90 percent of the total costs incurred by the compan

nataly862011 [7]

Answer:

This allows WeBuy&Sell.com to earn high profits at a very low cost. According to the given scenario, WeBuy&Sell.com has high scalability.

Explanation:

In an economic context, a scalable business model implies that a company can increase sales given increased resources.

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4 years ago

The Chester Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years. The exp

xxTIMURxx [149]

Answer: d) $33,538,000

Explanation:

Use straight line depreciation and find the annual depreciation.

= (40,900,000 - 4,090,000) / 15

= $‭2,454,000‬

In 3 years, the depreciation is;

= ‭2,454,000‬ * 3

= $‭7,362,000‬

Net book value = 40,900,000 - ‭7,362,000‬

= $‭33,538,000‬

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3 years ago

Bragster Bar, a brand of energy bars in Canada, sells its bars singly or in packs of two in South Asian markets instead of their

maks197457 [2]

Answer: Economical requirements

Explanation: Economic requirements refers to the financial and economic position of an economy which affects the preferences and wants of the individuals living in that economy.

In the given case, the company is offering single bar pack as the asian countries do not have high purchasing power as in Canada. If the company offers their regular packages then its price would be high and a large portion of economy might not be able to buy it.

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3 years ago

Using the information below, calculate net income for the period: Sales revenues for the period $ 1,318,000 Operating expenses f

Vanyuwa [196]

Answer:

Net Income 516,000

Explanation:

Net income = revenue - expenses

sales revenue 1,318,000

COGS (549,000) (A)

Operating expenses <u> (253,000) </u>

Net Income 516,000

(A)

<u>To calculate the COGS we will use the inventory identity</u>

$$$Beginning Inventory + production = Ending Inventory + COGS$

50,000 + 554,000 = 55,000 + COGS

50,000 + 554,000 - 55,000 = COGS

COGS = 549,000

4 0

3 years ago