Asked by Aaron Jared on Sep 24, 2024
Verified
Many bars close to campuses have started offering cheaper beer to consumers with a student IDs.These bars are using
A) Direct price discrimination
B) Indirect price discrimination
C) Decreasing returns to scale
D) None of the above
Direct Price Discrimination
A pricing strategy where a seller charges different prices to different customers for the same product or service, based explicitly on the customer's willingness to pay.
Indirect Price Discrimination
A pricing strategy where different prices are charged for the same product or service in different markets or segments, not directly by customer characteristics.
Decreasing Returns
Refers to a situation in which adding more of a production factor, such as labor or capital, results in progressively smaller increases in output.
- Discern the differences between direct and indirect methods of price discrimination.
Verified Answer
Learning Objectives
- Discern the differences between direct and indirect methods of price discrimination.
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