Price Discrimination
Prices are based upon the price elasticity of demand in each given market. In other terms, this means that during ladies night at the local bar, it costs more for men to have a beer than women simply because these bars find it o.k. to charge females less, as a way to draw more females to the business on a specific night.
Price discrimination is part of the commercial and business world. Movie theaters, magazines, computer software companies, and thousands of other businesses have discounted prices for students, children, or the elderly. One important note though, is that price discrimination is only present when the exact same product is sold to different people for different prices. First class vs. coach in an airline (though sometimes just differing in how many free drinks you can get) is not an example of price discrimination because the two tickets, though comparable, are not identical.
Price discrimination is based upon the economic thoughts and practice of marginal analysis. This process deals specifically with the differences in revenue and costs as choices and/or decisions are made.
Profit maximization is achieved not when the number of products sold is the highest, nor when the price is the highest. Profitability price discrimination is only profitable if and when the given target groups price elasticity of demand differs to the point where the separate prices yield to profit maximization for each given group in question (where marginal revenue equals marginal cost). Groups that are more sensitive to prices, (students and senior citizens for example), have a lower price elasticity of demand and are the ones that are often charged the lower prices for the identical goods or services. The key to price discrimination and using it to fully compliment other economic practices, ultimately achieving the total profit maximization, is the ability to effectively and efficiently collect, analyze, and act upon data gathered about the different groups.
First of all, the groups must be accurately identified and the differences between groups must be thought of ahead of time. Children, genders, and senior citizens are easily singled-out by appearance, while military personnel, college students, and other groups must carry some sort of identification. Firms typically will quote the highest prices in advertisements,...
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Price discrimination is a significant and influential practice on the market in the modern economic world. It aids in a firm's profit maximization scheme, it allows certain consumers with more scarce resources the opportunity to purchase goods or services that would otherwise be usable, and it aids firms in balancing what is and what is not sold. Price discrimination is an effective means by which a firm can sell a higher quantity of goods, make a higher profit margin on the goods it sells, and builds a broader consumer base due to differing price elasticity of demand for given goods and services. Price discrimination ultimately equalizes price and value for both the consumer and the firm, creating a more ideal situation for both entities in terms of preference and opportunity cost.
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Apart from Antitrust laws, there are several other laws that promote fair business practices. The Robinson-Patman Act prohibits price discrimination. This act ...
Due to the various options of distribution channels their prices vary. Consumers take that into consideration when purchasing their products.
1. What is a price taker? Discuss the assumptions that are made in order to obtain the perfectly competitive model.
Abstract This paper discusses a recent controversy in which Amazon.com was found to be pricing the same product differently for different customers. This paper addresses the ethical implications that such an action could have on such a young industry. Is it discrimination or is it justified research?
More and more children are beginning to feel pressured in school. Their teachers are assigning too much homework and they are expected to excel in their classes. Most children are involved in some sort of after school activity with their family and friends. But having large amounts of homework restricts them from having any free time. This
Homework is an important aspect in life, and it is used in a multitude of countries. Most of the teachers assign homework on a daily basis, and some only assign homework when it seems to be necessary. Some teachers also make homework as a part of your overall grade, and some teachers rely on their students to put in a total effort. Homework plays an important impact because it is the means of success, and it will determine how prepared you are for any upcoming assessments. Homework is also quality practice and enables the student to succeed more. Homework is more than extra practice. It is an essential resource that teaches students how to be organized and develop good time management skills as well.
( they can get refreshed with information). This also gives the student responsibility to keep track of their work and to organize their days as far as important to least important things. When parents see their children progressing they might want to start ( or continue ) getting more involved in his/her child's work levels. ( Reading levels, math levels etc…). When students bring home their work parents can check on what their doing as far as how their doing in school by checking scores on practice sheets etc.. Parents and students aren’t the only ones who can benefit from this too. By looking at homework scores the teachers can see what the students is struggling or progressing in. Homework is the best option for students is because students can get good practice and can learn more responsibility. Teachers and parents can benefit
Lower income population is more price sensitive and will be more concern about the absolute lowest price for an item.
“Homework can indeed provide preparation, practice, and reinforcement for lessons. Homework can help kids learn important life skills like organization, time management, and how to use resources. It’s also true that homework can be busy work, a reinforcer of mistakes, and stressful. Continual failure with homework, like continual failure during school hours, lowers self-esteem and makes it less and less likely that a kid will be successful. When homework becomes a nightly battle, it can damage parent-child relationships.”
When demand is elastic as with Coca Cola products price changes affect total revenue. When the price increases revenue decreases and when the price decreases revenue increases. For Coca Cola if they notice a decrease in revenue they would offer products at a discount to increase revenue. They do this quite often with sales such buy 2 20 oz. bottles for $3 instead of the normal $1.89 each price
Ring! The bell has rung letting you know school is finally over. You slowly trudge to your locker to get all the homework and textbooks you’ll need. Once again your teachers have piled you with lots of homework that you know will take you hours to do. Every single school day, hundreds of schools across the country assign homework every night. This leads to hours of work after school that many students just don’t want to do. Many parents and schools think homework is helpful. However, this may not be the case. Schools should not assign homework because students need time to relax, and too much homework may cause health problems.
In conclusion, I have to say that homework should truly be banned from all schools around the world. When this happens, teachers will start to feel respected during class time, parents will be able to bond and get together with their precious family for once, and students? They will be living the true meaning of a school life. Sure, homework can teach children good study habits, organization, and responsibility. But face it. You and I know it’s just more than that. Homework is just downright misery.
Not surprisingly, fares and price is one of the most critical attributes in buying products or services. Mostly fares are the key element towards satisfactions level of students towards rail transportation. Price fares play a vital role in the customer satisfaction because the charges of the product directly affect the customer, so if it is affordable then customers satisfy it and willing to purchase the product again and again in future （Gustafsson et al. 2005). Anderson et al.（1994）; Cronin et at.（2000） and Virvilaite（2008） studying price relationship with satisfaction scientists indicated that “the level of satisfaction, depends on service quality, price”. As consumers are now demanding higher quality in item than ever before (Leonard and
Every day human activity has negative effects on the environment. The burning of fossil fuels has released large concentrations of carbon dioxide (CO2) into the atmosphere. Developing countries such as China and developed countries such as the United States (US) are consuming more fossil fuel, thus releasing more CO2 from their admissions (Vital Signs 42). This released CO2 is more evident in urban areas. Many activities such as driving, using gas stoves, and burning coal release different type of gases known as greenhouse gasses. A greenhouse gas is a gas that retains heat in the atmosphere and helps warm the earth's temperature, which is known as the greenhouse effect. The heat is retained because the gasses stop the earth's heat from being released into space. According to Mary E. Williams, editor of Writing the Critical Essay Global Warming: “CO2 concentrations are higher than they have ever been at any time.... The IPCC concluded in 2001 ...
First of all, yes homework is meant to help students practise, reinforce their daily learning and develop good study habits. Homework also allows parents to observe their child’s education and progress. Many skills are devel...