A What Elements Must Be Proven To Find Price Discrimination?
Asked by: Ms. Emily Smith M.Sc. | Last update: March 18, 2020star rating: 4.7/5 (72 ratings)
The elements of the offense can be listed as follows: There must be (1) commercial price discrimination, – i.e., a commercial supplier must charge differing prices for the same or similar goods when selling them at around the same time to its favored and disfavored commercial customers; (2) the practice must entail a.
What are the three limits to price discrimination?
There are three types of price discrimination: first-degree or perfect price discrimination, second-degree, and third-degree.
Under what conditions price discrimination is possible?
Price discrimination is possible when the two markets or markets are separated by large distance or tariff barriers, so that it is not possible to transfer goods from a cheaper market to dearer markets. For instance, a monopolist may sell the same product at a higher price in Bombay and lower price in Meerut.
Which of the following best defines price discrimination?
Answer and Explanation: Price discrimination is the practice of offering the same product to different customers at different prices.
What are 3 basic defenses that a seller can use if accused under the Robinson-Patman Act?
Allegations of Robinson-Patman violations may be defended by asserting and proving either that the differing prices reflect only the cost of the seller's manufacture or delivery (the "cost justification" defense); or, that the seller is attempting either (1) to meet the competition of another seller, or (2) enable his.
24 related questions found
Which of the following is true if a firm is able to price discriminate?
Which of the following is true if a firm is able to price discriminate? The firm's economic profit is greater than without price discrimination.
What are the objectives of price discrimination?
The goal of price discrimination is for the seller to make the most profit possible and to capture the market's consumer surplus and generate the most revenue possible for a good sold.
Which of the following is not a condition of price discrimination?
The correct answer is b. The seller must be able to distinguish among customers who would be willing to pay different prices.
Which of the following is not a condition for a firm to engage in price discrimination?
The answer is d: There is no resale market for the good.
Which is the best example of price discrimination quizlet?
d. Price discrimination is the business practice of selling the same good at different prices to different customers. Charging adults and children different prices for the same movie is an example of price discrimination.
What are the types of price discrimination?
Price discrimination is the practice of charging a different price for the same good or service. There are three types of price discrimination – first-degree, second-degree, and third-degree price discrimination.
Which of the following describes price discrimination in a monopoly?
This practice of charging different prices for identical product is called price discrimination. Refers to price dispodach when the monopolist charges different prices at different places for the same product. This type of discrimination is also called dumping. separating markets.
What is one legal defense to an alleged Robinson-Patman price discrimination claim?
There are two legal defenses to these types of alleged Robinson-Patman violations: (1) the price difference is justified by different costs in manufacture, sale, or delivery (e.g., volume discounts), or (2) the price concession was given in good faith to meet a competitor's price.
How can price discrimination be fair?
If prices are stable, or at least predictable, then buyers can plan their purchases over a period of time to be as economical as possible. This relationship between prices and costs appeals to people because of its efficiency, but it is also perceived as fair.
Which of the following is a legal defense to a charge of secondary price discrimination?
Meeting Competition Lowering a price to meet competition is a complete defense to a charge of price discrimination.
Which of the following characteristics is necessary in order for a firm to price discriminate?
-In order to price discriminate, firms must be in the monopoly, oligopoly, or monopolistic competition market structure. - Because rather than being price-takers, firms in these market structures have some degree of market power, which gives them the ability to charge more than one price.
Which of the following is a result of perfect price discrimination quizlet?
Which of the following is a result of perfect price discrimination? Zero consumer surplus.
Which of the following is true for a monopolist that engages in perfect price discrimination?
The correct option is d. Perfect price discrimination allows the monopolist to reap the entire gains from production.
What are the objectives of price policy?
Five main objectives of pricing are: (i) Achieving a Target Return on Investments (ii) Price Stability (iii) Achieving Market Share (iv) Prevention of Competition and (v) Increased Profits!.
Is price discrimination illegal?
Price discrimination refers to charging different customers different prices for the same good or service. The Sherman Antitrust Act, Clayton Antitrust Act, and Robinson-Patman Act outlaw price discrimination when the intent of that discrimination is to harm competitors.
Which of the following are not the objectives of price policy?
Correct option is B) To earn maximum profit.
Which of the following is not a necessary condition for price discrimination quizlet?
Third-degree price discrimination is discrimination among? Which of the following is not a necessary condition of price discrimination? It must cost the seller more to service some customers than others. The demand curve facing a monopolist is always?.
Which of the following is not necessary for successful price discrimination?
c) Sellers must have higher price elasticities than buyers. This is not required for successful price discrimination. Which of the following is NOT a requirement for successful price discrimination?.
When a monopolist engages in perfect price discrimination the quantity produced and sold?
The answer is B. Under perfect price discrimination, monopolists' produces and sells goods of larger quantities than if a single price is adopted.
Under what circumstances can a firm successfully practice price discrimination to successfully practice price discrimination?
- each consumer a different price equal to that consumer's willingness to pay. Under what circumstances can a firm successfully practice price discrimination? Some consumers must have greater willingness to pay for the product than others and a firm must know consumer willingness to pay for the product.
What are the conditions for price discrimination quizlet?
1) Firm must have a certain degree of market control/dominance e.g. monopoly. 2) Identification of different groups of customers. 3) Different groups of customers must have different price elasticities of demand. 4) Knowledge of prices customers will pay.
How does price discrimination affect consumers?
Price Discrimination involves charging a different price to different groups of consumers for the same good. Price discrimination can provide benefits to consumers, such as potentially lower prices, rewards for choosing less popular services and helps the firm stay profitable and in business.
How does price discrimination help cover fixed costs?
How does price discrimination help cover fixed costs? If price discrimination expands the size of the market, the fixed costs can be spread over a much larger output level. Tying is: the practice of a firm selling one product that requires the consumer to purchase another of the firm's products.
How do you calculate price discrimination in monopoly?
If the monopolist sets a price of $80, then we calculate the number sold by plugging P = 80 into the market demand equation and solving for Q. If the firm sets a price of $30, then we can similarly calculate the number that would be sold at P = 30.