Read Managerial Economics: Foundations of Business Analysis and Strategy: Chapters 14 and answer the questions Foundations of Business Analysis and Strategy

Fundamentals of Business Analysis and Strategy

  1. Price discrimination sounds like a “bad” thing in society. Can you think of reasons why price discrimination might be considered a “good” thing for society?

Demand elasticity can be used as the basis for dividing customers into different groups. This grouping allows companies to charge different prices for the same product in different market segments. This enables the company to increase its profit margins beyond what it would have if the pricing was flat. This technique is called price discrimination. It is a sales strategy whereby customers charge different fees for the same product based on the seller’s perception of the customer’s purchasing power (Twin et al., 2021). Sellers strive to price goods and services at the highest price customers are willing to pay. Price discrimination is used to capture consumer surplus and convert it into profit.

It is worth noting that different prices can be set for the same item only if consumers perceive the items as different and rate them differently. In this case, separate demand curves develop in different market segments where prices may differ. There is no price discrimination when different goods or services are priced differently. For example in a

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more