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Other Fields Homework Help Economics Topic started by: DragoxCM16 on Oct 10, 2019



Title: Firms engage in odd pricing when they charge prices that appear to be less than they really are; for ...
Post by: DragoxCM16 on Oct 10, 2019

Question 1.

Assume a firm is able to use an optimal two-part tariff.

a.

Is the outcome economically efficient? Why or why not?

b.

What happens to consumer surplus?

c.

Does this represent perfect price discrimination? Why or why not?


Question 2.

Firms engage in odd pricing when they charge prices that appear to be less than they really are; for example, charging a price of $4.95 instead of $5.00 and $.99 instead of $1.00. How have researchers tried to determine whether odd pricing is successful in convincing consumers that odd prices are less than they really are?



Title: Firms engage in odd pricing when they charge prices that appear to be less than they really are; for ...
Post by: brigettelearn on Oct 10, 2019
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