Exam 12: Pricing and Advertising

A hotel with market power charges customers who check in before 5:00 pm more than those who check in after 5:00 pm.Those who check in early are much more likely to use the hotel's pool.Explain why this price difference may not be price discrimination.

At many municipal golf courses,local residents pay a lower fee to play than other golfers do.One necessary condition for the golf course to be able to successfully price discriminate according to residency is that

Suppose two countries,A and B,are at war with each other.Country A is very wealthy;country B is very poor.The XYZ Co.produces tanks.Is XYZ able to set a different price for the tank sold to country A than the price for the tank sold to country B? Explain.

A weapons producer sells guns to two countries that are at war with each other.The guns can be produced at a constant marginal cost of $10.The demand for guns from the two countries can be represented as: Q_A = 100 - 2p Q_B = 80 - 4p Why is the weapons producer able to price discriminate? What price will it charge to each country?

If Ben values good X more than good Y,and Catherine values good Y more than good X,a firm can increase its profits by

Which of the following is NOT an example of firms trying to prevent resale?

Quantity discrimination makes sense if

A photograph processing machine company requiring customers that buy a processing machine to purchase chemicals and photographic paper from them is an example of

If somebody posing as a vacationer were able to purchase large numbers of airline tickets from the airlines and later resell them to business travelers,

If a monopoly charges higher prices to consumers who buy smaller quantities than to consumers who buy larger quantities,then

Pizza joints often offer substantially lower prices for pizza picked up at the shop compared to delivered pizza prices.This may be an attempt at