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Title: If firms differentiate their products in different ways and charge different price because of these ... Post by: jonnyjon on Oct 10, 2019 Question 1. If firms differentiate their products in different ways and charge different price because of these differentiation factors, then ▸ transactions costs are being ignored. ▸ the firm must not be maximizing profit. ▸ demand must be perfectly elastic. ▸ the law of one price is not violated. Question 2. Table 16-1
Table 16-1 shows the price for the hardcover version of the novel The Girl on the Train by Paula Hawkins at four online bookstores. Refer to Table 16-1. Which of the following can one conclude from the data above? ▸ Amazon.com and Walmart.com are able to charge a lower price for the item because they are more cost efficient than the other two companies. ▸ Walmart.com and Amazon.com have deliberately under-priced their product to force the other two companies out of business. ▸ The item offered for sale is similar but not identical; the quality of service and delivery time might vary from store to store, which justifies the price differences. ▸ The data provides clear evidence of price discrimination in the online bookstore market. Title: If firms differentiate their products in different ways and charge different price because of these ... Post by: krobdance on Oct 10, 2019 Content hidden
Title: If firms differentiate their products in different ways and charge different price because of these ... Post by: jonnyjon on Oct 10, 2019 Good timing, thanks!
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