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Evgen [1.6K]
3 years ago
8

Suppose that your school pays one rate for the first one million kilowatts of electricity and a lower rate for any power it uses

over one million kilowatts. what economic concept is occurring here? a. perfect price discrimination b. second-degree price discrimination c. third-degree price discrimination d. economies of scale
Business
2 answers:
Rama09 [41]3 years ago
8 0

Answer:

The correct answer is letter "B": second-degree price discrimination.

Explanation:

Price discrimination occurs when a company charges different customers different prices for the same goods or services. The different price charges to a different group must be justified by the amount of effort required. There are three degrees of price discrimination. In the second-degree discounts are given for products or services acquired in huge amounts.

Serhud [2]3 years ago
3 0

Answer: b. second degree price discrimination

Since the school pays a different rate for the first million kilowatts consumed and a lower rate for any consumption over a million kilowatts, second degree price discrimination is at play.

When corporations or businesses sell the same product to different customers at different prices, with a view to maximize profits, price discrimination is said to occur.

There are three types of price discrimination -

First Degree price discrimination

Second Degree price discrimination

Third Degree price discrimination

First degree price discrimination occurs when the supplier sells the goods at a price the customer is willing to pay for the good.

Second Degree price discrimination occurs when the supplier establishes slabs for different quantities of goods sold. In this case, the supplier will offer a higher per unit cost for lower quantity of goods, and a lower per unit cost for a higher quantity of goods

Third degree price discrimination occurs when a firm is able to clearly divide its markets into segments. The products are positioned in each segment in a different manner.

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Explanation:

Graeter’s decision to stop franchising was simply to maintain the quality of their products.

If I was in his position, I'll also like to maintain our products quality. It is vital to keep the family business while also following the laid down principles by those before me. Hence, I agree with his decision.

5 0
2 years ago
Determine the market potential for a backpack that has 200,000 prospective buyers who purchase an average of 2 backpack per year
LekaFEV [45]

Answer:

i.The total number of a company sell if it desires a 10% share of this market? is 40,000 units

ii. The % of the market supplies that should capture to break even is 5%

Explanation:

To calculate break even point in unit, use the formula;

Fixed Cost / Contribution Margin.

In this question, Fixed cost is the factory lease cost of one year for $400,000

Contribution margin is the difference betwen Selling Price and Variable Cost.

This will be $50-$30=$20

Therefore, Break even point in unit = $400,000 divided by $20

this will give 20,000 units.

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8 0
3 years ago
A company's issued share capital throughout an accounting period consists of 500,000 common shares of 20 cent each and 100,000 p
ella [17]

Answer:

a. $0.30

Explanation:

Basic Earning Per Share (BEPS) = Earnings Attributable to Holders of Common Stock ÷ Weighted Average Number of Common Stock.

Earnings Attributable to Holders of Common Stock calculation :

Net income after tax for the period                            $160,000

Less Preference Dividend                                           ($10,000)

Earnings Attributable to Holders of Common Stock $150,000

Weighted Average Number of Common Stock calculation :

Outstanding common shares                                      500,000

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Basic Earning Per Share (BEPS) = $150,000 ÷ 500,000

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A remotely located air sampling station can be powered by solar cells or by running an above ground electric line to the site an
Olin [163]

Answer:

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