Question

Which statement best describes the practice of price differentiation? A. Charging different customers different prices for...

Which statement best describes the practice of price differentiation? A. Charging different customers different prices for the same product is unfair. B. Charging different customers different prices for the same product might be unfair, but our responsibility is to maximize shareholder wealth. C. Charging different customers different prices for the same product allows the firm to increase profitability by better aligning price with customer value. D. Charging different customers different prices for the same product allows the firm to increase profitability by reducing total cost. E. Different products should have different prices. If not, a firm wouldn't be able to cover its costs.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Option C is correct

Charging different customers different prices for the same product allows the firm to increase profitability by better aligning price with customer value.Different market has different type of customer ,Europe has a high income group customer whereas certain African countries market has low income group customer so the price cant be charged same in these two markets if the the same price is charged in African market as charged in European market then sale will be low in Africa which can be increased by charging less in African market than in European market and hence net profit can be increased

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose a monopolist practices price discrimination in selling his product, charging different prices in two separate...
Suppose a monopolist practices price discrimination in selling his product, charging different prices in two separate markets. In the market A the demand function is PA = 100-qA and in B it is PB = 84-qB, where qA and qB are the quantities sold per week of A and B, PA and PB  are the respective prices per unit . If the cost function of the monopolist is c = 600 + 4 (qA + qB) A.How much should be sold...
Which statement best describes how economists think about the flexibility of the price level over different...
Which statement best describes how economists think about the flexibility of the price level over different periods of time? The higher the overall level of competition in the economy, the less flexible prices will be. Prices are relatively flexible in the short run but less flexible in the long run. Prices change at about the same rate and magnitude regardless of the time frame. Prices are relatively inflexible in the short run but more flexible in the long run.
Question 17 (1 point) Price discrimination is used when a seller faces different demand curves in...
Question 17 (1 point) Price discrimination is used when a seller faces different demand curves in different markets because: Question 17 options: profits are less than when selling at monopoly prices. no other pricing methods are feasible. profits are greater than selling at a single price. the practice eliminated waste. Question 18 (1 point) Why is it important for firms practicing price discrimination to prevent arbitrage of their product? Question 18 options: Arbitrage is unrelated to firms' profits since the...
All else equal, an increase in customers' reservation prices will have what effect on the value...
All else equal, an increase in customers' reservation prices will have what effect on the value generated by a business? It will be unaffected It will decrease It will increase Question 2 An increase in the value of resources in an alternate use will have what effect on the ability of a company to generate value using those resources? it will be unaffected It will decrease It will increase Question 3 Which sequence of planning communication is most appropriate? Analyze...
Please Check the wrong ones! 1. Which of the following best describes scarce resources? a. Resources...
Please Check the wrong ones! 1. Which of the following best describes scarce resources? a. Resources for which the quantity that people want exceeds the quantity that is freely available b. Resources that most people cannot afford to buy c. Resources for which the quantity demanded is the same for all economic agents d. Resources that can only be distributed efficiently by the government 2. Which of the following statements is true of models? a. It is more important for...
12.Suppose that MR = MC = $3 at an output level of 2,000 units. If a...
12.Suppose that MR = MC = $3 at an output level of 2,000 units. If a monopolist produces and sells 2,000 units, charging a price of $6 per unit and incurring average total cost of $5 per unit, the monopolist will: a.earn profit equal to $2,000. b.earn profit equal to $6,000. c.choose to sell fewer than 2,000 units in order to charge a higher price. d.choose to sell more than 2,000 units in order to increase revenue. 13.A monopoly produces...
1. Which is statement is true? I. A single-price monopolist charges a price equal to the...
1. Which is statement is true? I. A single-price monopolist charges a price equal to the marginal cost of the last unit sold. II. A monopolist with positive marginal costs and facing a linear demand curve always sets a quantity (or price) such that it sells on the elastic section of the demand curve. III. A monopolist regulated by marginal-cost pricing regulation sells at a price that covers its variable and fixed costs of production, but it still causes a...
OSCM Assignment 6 - Reducing Waste vs. Price Increase In a competitive marketing environment for consumer...
OSCM Assignment 6 - Reducing Waste vs. Price Increase In a competitive marketing environment for consumer products, manufacturers are not allowed the luxury of raising selling prices to increase profits. This environment makes it difficult to increase sales unit volume without increasing very costly marketing expenses. Without price increases and sales volume increases, it is the job of top management decision makers to find other ways to increase profitability – they turn to Continuous Improvement. Background: We manufacture and distribute...
summaries the following in your own words : 5. Horizontal Integration Horizontal integration is the range...
summaries the following in your own words : 5. Horizontal Integration Horizontal integration is the range of product and service segments that a firm serves within its market. A company who wants to expand its horizontal scope has an opportunity to do that through mergers and acquisitions. A merger is combining two or more companies into a single corporate entity, with the newly created company often taking on a new name. An acquisition is a combination in which one company,...
1.A firm is a pure monopoly when: a.it is the only seller of a unique product...
1.A firm is a pure monopoly when: a.it is the only seller of a unique product and barriers to entry prevent other sellers from entering the market in the long run. b.it is the only seller of a product that has very few close substitutes and entry into the market in the long run is unrestricted. c.there are only a few other very large firms selling similar products. d.it can sell all it can produce at any price it chooses....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT