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A telephone company sells calling cards for consumers in the U.S. who want to call foreign countries. The price of a Blue-Card is $10, and
A telephone company sells calling cards for consumers in the U.S. who want to call foreign countries. The price of a Blue-Card is $10, and it is worth 100 calling minutes. The price of a Yellow-Card is $20, and it is worth 250 calling minutes. The price of a Red-Card is $30 and it is worth 450 minutes. This is an example of O a. third-degree price discrimination O b. two-part tariff O c. first-degree price discrimination O d. peak-load pricing O e. second-degree price discriminationCompare (1) a monopolist using perfect rst-degree price discrimination, to (2) a standard monopolist charging a single price (no discrimination). In the (1) rst-degree price discrimination case, the consumer surplus is v , the producer surplus is v , and the deadweight loss is v than the (2) standard single price case. A website called SuperDuperRazors.com sells men's shaving razors. One box of razors cost $10, and is enough for one month of use. If a consumer buys 12 boxes (one year supply), then the consumer can complete a rebate form and send it to the website. The website then sends back to the consumer a $20 rebate check. This website is engaging in O a. peak-load pricing 0 b. two-part tariff O c. rst-degree price discrimination C) d. third-degree price discrimination 0 e. second-degree price discrimination
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