Economics

1. Price Discrimination Note: be sure that you understand the various types of price discrimination. a. Give a specic example of a type of price discrimination that would harm all consumers, relative to uniform pricing. Use either diagrams or numerical examples. . Give a specic example of a type of protable price discrimination that would harm no consumer, but help at least some. This is relative to a uniform price that is above marginal cost. Give a carefully described example from your personal experience of second-degree price discrimination. . You are a monopolist of two products,A and B. There are two types of consumers, Type 1 and Type 2. These two consumer types differ in their willingness to pay for A and B. You know that there are equal numbers of each type, but cannot identify specic individuals by their types. The following table gives their willingness to pay (WTP) for each product. '. Assume zero marginal costs for each product. Is pure bundling more protable than independent pricing? Prove it. Now, assume that the marginal cost of A is still zero, but the marginal cost of B is 3 .5. Is pure bundling still the most protable type of pricing, or is something else even more protable? Prove your