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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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ABC Corporation uses the weighted-average method in its process costing system.

Troyanec [42]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

Download xlsx

7 0

3 years ago

Suppose Jose splits his spending across scones and coffees. Due to droughts in coffee-producing regions, the price of coffee dou

Slav-nsk [51]

Answer:

He will be less likely to spend on scones.

Explanation:

Understanding the spending pattern requires to understand the factors involving in purchasing.

Income: Some people live tightly, and for that they have to cut down their expenditures and that affects their spending. Jose will not have much issues although buying scones because they will not be expensive, so this relationship is negative.
Substitution: This will probably affect the the spending of Jones on scones because he used to buy both together, and if he stops spending on coffee he will not buy scones as well.

7 0

3 years ago

Your sister just deposited $13,000 into an investment account. She believes that she will earn an annual return of 10.3 percent

omeli [17]

Answer:

146,640

13,000×9.4%=1,222

1,222×120=146,640

6 0

3 years ago

Will give brainliest

xeze [42]

Answer:

Avoid, because if we study we legit don't have time to take stress so for me it is stress.

Mark as brainliest plssss for u i answered this question...

7 0

3 years ago

A stronger euro is less favorable for:

Reptile [31]

Group of answer choices.

A. German tourists traveling abroad.

B. American tourists traveling in France.

C. Canadian firms selling in Germany.

D. Canadian investors with money investments in Germany.

Answer:

B. American tourists traveling in France.

Explanation:

A foreign exchange market can be defined as a type of market where the currency of a country is converted to that of another country.

For example, the conversion of the United States of America dollars into naira, rands, yen, pounds, euros, etc., at the foreign exchange market.

In this context, a stronger euro is less favorable for American tourists traveling in France because the currency of the Americans, which is the U.S dollars would exchange at a far lesser rate to the euros.

However, a stronger euro would be more favorable for German tourists that are traveling abroad, Canadian firms that trade or sells its products in Germany, and Canadian investors who are having money investments in Germany.

Note: Euro is the official currency (legal tender or money) of Germany.

5 0

3 years ago