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1. Quantity discounts. This divides customers into bulk buyers and non-bulk buyers and hits people who cannot afford to buy enough to qualify for the quantity discount the hardest.
2. Location/affiliation discounts. Prices may vary based on 3rd party membership or someone's location. For instance, college students may pay less at the book store on campus than tourists, guests, and visitors of the college. Similar is done with employee discounts. So people who are "local" to the shop are rewarded while those on the "outside" have to pay more.
3. Price sensitivity discounts. This is the opposite of quantity discounts where the wealthier customers are targeted. Why do the corporate versions of Windows cost so much more? They are simply charging people what they can and will pay. It is in effect discrimination against wealthier customers.
4. Multiple brands of identical products and marketed to different populations with differing prices. Cigarettes are an example. Would it be fair if Newport's were priced higher than Marlboro's? Some would allege racism in that case.
5. Multiple prices per person. If you run a store with no printed prices on the items, you can tell any customer any price you want. So if you don't like certain people, you could theoretically charge them more.
6. Discrimination by product. If people of a race you don't like use certain products that other people tend not to use, you could charge more for those products. Hair products are an example of this. If a relaxer kit was twice the price of a perm kit, what would that tell you? Probably that the owners are racists.
The first three are considered common and acceptable practices. Item four is done to an extent. The last two are not acceptable but do happen on occasion.
What else can I help you with?
How many types of price discrimination under monopoly?
There are three main types of price discrimination under monopoly: first-degree, second-degree, and third-degree. First-degree price discrimination involves charging each consumer their maximum willingness to pay. Second-degree price discrimination offers different prices based on the quantity consumed or product version, such as bulk discounts. Third-degree price discrimination segments consumers into different groups based on observable characteristics, charging each group a different price.
What are the three degrees of price discrimination?
The three degrees of price discrimination are: First-degree price discrimination (or personalized pricing) occurs when a seller charges each consumer the maximum price they are willing to pay, capturing all consumer surplus. Second-degree price discrimination involves charging different prices based on the quantity consumed or the product version, such as bulk discounts or premium pricing for higher-quality options. Third-degree price discrimination occurs when prices vary based on identifiable characteristics of different consumer groups, such as age, location, or time of purchase, like student or senior discounts.
Difference between price discrimination and dumping?
price discrimination is to rip highest possible profit out of consumers. there are three different price discrimination, first degree - where firm charges highest possible price each individual is willing to pay; in this case, consumer surplus is zero second degree - where firm charges different price for different quantity of good; in this case, firm rips off some of consumer surplus third degree - in this case, firm separates good into two or more different market as demand for one group of consumer is higher, or more elastic etc, than the other group of consumers. in order to exercise price discrimination, firm must have significant market power (to set prices) and is able to prevent re-selling, and also need to able to identify different consumers/group of consumers demand for the good. while dumping occurs when foreign firm trying to increase market share/eliminate domestic firms out by setting lowest price where no domestic firm will be willing to supply, hence all of the quantity will be supplied by the foreign firm. in such case, firm may initially experience losses, but in long run, it will drive other firms out of the market, hence will be a monopoly and will rip profit out of consumers.
What are the various types of price discrimination?
Price discrimination refers to when the same product is sold for different prices, no associated with changes in cost. There are three types of price discrimination.1st degree: Different prices are charged to different customers, based on their perceived elasticity of demand for the good.EX: black markets, market places, auctions, etc.2nd degree: Product is available at a lower per-unit cost than was previously advertised. This includes companies which sell packages of a product that are deemed to be surplus capacity for a lower per-unit cost, or companies which sell larger quantities of a good at a lower per-unit cost.EX: Buying in bulk (wholesale warehouses like Costco), airlines selling off last-minute seats that have not been bought for a lower price, etc.3rd degree: Price of product varies by location or timeEX: Price of gas lower in rural communities, more expensive to fly south during the winter, etc.
What is the market price for lemons?
obviously it depends where you go different there are prices in different places off season they can cost up to a dollar or more on season around three for a dollar
How many types of price discrimination under monopoly?
There are three main types of price discrimination under monopoly: first-degree, second-degree, and third-degree. First-degree price discrimination involves charging each consumer their maximum willingness to pay. Second-degree price discrimination offers different prices based on the quantity consumed or product version, such as bulk discounts. Third-degree price discrimination segments consumers into different groups based on observable characteristics, charging each group a different price.
What is a example of discrimination?
There are three different kinds of discrimination. i am going to type about race discrimination.Martin Luther king
Three of the business consequences that can result from growth in information density?
Price and cost transparency, Price discrimination (market segment)
Can you identify three different forms of energy?
Three different forms of energy are kinetic energy, potential energy, and thermal energy.
What are the different forms of government?
The three main forms of government are:DemocracyMonarchyDictatorship
How are the three forms of radiation from the sun different?
cause they different
How do you compare fractions in three different forms?
thirds
How many different forms of vitamin A are active in the body?
three
Why do you think the three different forms of government evolved over time?
Cause.
Difference between price discrimination and dumping?
price discrimination is to rip highest possible profit out of consumers. there are three different price discrimination, first degree - where firm charges highest possible price each individual is willing to pay; in this case, consumer surplus is zero second degree - where firm charges different price for different quantity of good; in this case, firm rips off some of consumer surplus third degree - in this case, firm separates good into two or more different market as demand for one group of consumer is higher, or more elastic etc, than the other group of consumers. in order to exercise price discrimination, firm must have significant market power (to set prices) and is able to prevent re-selling, and also need to able to identify different consumers/group of consumers demand for the good. while dumping occurs when foreign firm trying to increase market share/eliminate domestic firms out by setting lowest price where no domestic firm will be willing to supply, hence all of the quantity will be supplied by the foreign firm. in such case, firm may initially experience losses, but in long run, it will drive other firms out of the market, hence will be a monopoly and will rip profit out of consumers.
What are the various types of price discrimination?
Price discrimination refers to when the same product is sold for different prices, no associated with changes in cost. There are three types of price discrimination.1st degree: Different prices are charged to different customers, based on their perceived elasticity of demand for the good.EX: black markets, market places, auctions, etc.2nd degree: Product is available at a lower per-unit cost than was previously advertised. This includes companies which sell packages of a product that are deemed to be surplus capacity for a lower per-unit cost, or companies which sell larger quantities of a good at a lower per-unit cost.EX: Buying in bulk (wholesale warehouses like Costco), airlines selling off last-minute seats that have not been bought for a lower price, etc.3rd degree: Price of product varies by location or timeEX: Price of gas lower in rural communities, more expensive to fly south during the winter, etc.
What are the three different forms of water found?
Liquid water, water vapor, and ice.
