Provide some real-world examples of price discrimination in action
What will be an ideal response?
Examples are very common place. Airlines routinely charge those who stay over Saturday nights a much lower fare than those who do not. Movie theatres, hotels and restaurants routinely charge a lower price for children and the elderly.
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If a central bank wishes to raise the foreign-exchange value of its currency, it will
A) buy domestic currency and sell foreign assets. B) sell domestic currency and buy foreign assets. C) attempt to reduce domestic interest rates. D) attempt to raise the domestic price level relative to foreign price levels.
The existence of diseconomies of scale (size) for the firm is hypothesized to result from:
a. transportation costs b. imperfections in the labor market c. imperfections in the capital markets d. problems of coordination and control encountered by management e. All of the above