What are the statements to the question?
Because Adults may replace products from children who can buy cheaply.
These levels of price differentiation are also known as individual pricing (tier 1 pricing), product versioning or menu pricing (tier 2 pricing), and group pricing (tier 3 pricing). .
In third-degree price discrimination, different consumer groups charge different prices for the same product. These consumer groups can be identified based on certain characteristics such as age, gender, location and time of use.
Third-class monopoly price discrimination means that monopolists charge different prices for the same product in different markets because the price elasticities of demand differ. Quite common in the market.
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Answer:
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Answer:
-39.3%
Explanation:
Calculation for the IRR of his retainer offer
First step is to find Opportunity Cost
Opportunity Cost= 8 hours × $250 per hour
Opportunity Cost = $2,000
Since we have known the monthly Opportunity Cost the second step will be to compute IRR
Present Value= $30,000
N = 12
PMT = -2,000
FV = 0
Now let compute the IRR
IRR= -3.276502% × 12
IRR= -39.3180% Approximately - 39.3%
Therefore the IRR of his retainer offer is closest to: - 39.3%