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3 years ago

Which of the following are necessary conditions for successful price discrimination?

Business

1 answer:

mixer [17]3 years ago

6 0

Answer:

d. at least two different markets with different price elasticities of demand

Explanation:

The theory of microeconomics about price differentiation is based on the concept of elasticity of demand. Price elasticity of demand is a measure of the sensitivity of demand for a good or service to changes in the price of that product. We say that the price elasticity of demand is elastic when a percentage change in the price of this good has major impacts on demand. On the contrary, we say that the price elasticity of demand is inelastic when variations in the price of goods have little or no influence on demand.

For price discrimination to take place, the offeror must be able to sell the same product at different prices to at least two different groups. This will depend on the price elasticity of consumer demand for the good in each of the markets. Thus, if one group is less elastic than the other, the offeror will be able to sell the goods at different prices.

An example: air market. Consumers are often more price sensitive when traveling for tourism than for business. Thus, a higher price may be charged to executives. which has lower price elasticity of demand than tourists.

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A business may survive and prosper during the growth stage even though it has neither differentiated its offering from competito

Elan Coil [88]

Answer:

B. Getting caught in the transition period without a clear strategic advantage.

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2 years ago

These financial conglomerates provide a range of services, such as investment banking, commercial banking, and financial advisin

Degger [83]

Answer:

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They are owned by members so that members can share funds among themselves. Members who save deposit the funds. These funds are then loaned to members who need the funds. ⇒ CREDIT UNIONS.

This is a Credit Union. Credit Unions were designed to ensure that people had access to low interest loans. They are like banks in that they loan money but they only loan to members. Members own the Union and it is run on a non-profit basis which is why rates are so low.

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8 0

2 years ago

For the first time in two years, Big G (the cereal division of General Mills) raised cereal prices by 4 percent. If, as a result

bearhunter [10]

Answer:

b. inelastic

c. Yes - it decreased

Explanation:

Elasticitiy of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded/ percentage change in price

= -2/4 = -0.5

The absolute value is 0.5

If the absolute value of the coffiecnet of elasticity of demand is less than one, demand is inelastic.

Demand is inelastic if a change in price has no effect on quantity demanded .

We can tell that the quantity demanded fell because of the negative sign in front of the percentage change in quantity demanded.

I hope my answer helps you

7 0

3 years ago

Jane is an employee of Tyco, Inc. and she is in charge of payroll. Every week she issues a check in the name of a fictitious emp

KengaRu [80]

Answer:

b. Tyco is liable because it authorized Jane to issue payroll checks.

Explanation:

There is the company responsibility to put the right person for the specific job. Here in the given situation Jane would not be a liable person for an vital position of the company. in the case when the fraud done by the employee so the firm would be liable as the company provide the authorization to the person who have to perform that job

Therefore, the option b is correct

4 0

2 years ago

An excerpt of an introduction of a cover letter about a Marketing position.

kolezko [41]

Answer:

answer is b

Explanation:

its b

8 0

3 years ago