Question
COURSE: MICROECONOMICS 2 - MARKET SEGMENTATION: TYPE 3 DISCRIMINATION - CONSUMER SEGMENT PRICING Answer if True, False or Uncertain and explain your decisions. (a) Price
COURSE: MICROECONOMICS 2 - MARKET SEGMENTATION: TYPE 3 DISCRIMINATION - CONSUMER SEGMENT PRICING Answer if True, False or Uncertain and explain your decisions. (a) Price increase of subway ticket, during rush hour, is a case of Type III price discrimination. (b) If two consumer segments have different price-demand elasticities, then Type III price discrimination is feasible. (c) If a company applies a Type III price discrimination strategy, it is in its best interest to direct its investment in advertising towards segment with lowest willingness to pay. (d) A government (and public) enterprise does not apply type III price discrimination.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started