Asked by Alexis Joffrion on Sep 24, 2024
Verified
Firms can practice indirect price discrimination by
A) Offering volume discounts
B) Using two-part pricing
C) Offering a bundle containing a number of units
D) All of the above
Indirect Discrimination
occurs when a seemingly neutral policy or action causes disadvantageous effects on a group of people because of their race, gender, age, or other protected characteristics.
Volume Discounts
Price reductions offered to buyers purchasing in large quantities, incentivizing bulk orders.
Two-part Pricing
A pricing strategy that involves charging a fixed fee plus a variable usage fee.
- Analyze the variances between direct and indirect price discrimination methodologies.
Verified Answer
CR
Cassandra Rousseauabout 8 hours ago
Final Answer :
D
Explanation :
All of the options mentioned (offering volume discounts, using two-part pricing, and offering a bundle containing a number of units) are strategies of indirect price discrimination. Offering volume discounts allows firms to charge different prices to customers based on the quantity they buy. Two-part pricing involves charging customers a fixed fee for a service or access and then charging them a usage fee. Offering a bundle of products or services enables firms to charge different prices for different combinations of goods or services.
Learning Objectives
- Analyze the variances between direct and indirect price discrimination methodologies.