Sunday, May 12, 2013

Bundling x | How does mixed bundling differ from pure bundling? Under what conditions is mixed bundling preferable to pure bundling? Why do many restaurants practice mixed bundling (by offering a complete dinner as well as an à la carte menu) instead of pure bundling?



How does mixed bundling differ from pure bundling? 
Under what conditions is mixed bundling preferable to pure bundling? 
Why do many restaurants practice mixed bundling (by offering a complete dinner as well as an à la carte menu) instead of pure bundling?

Price Discrimination z | In the town of Woodland, California, there are many dentists but only one eye doctor. Are senior citizens more likely to be offered discount prices for dental exams or for eye exams? Why?



In the town of Woodland, California, there are many dentists but only one eye doctor. Are senior citizens more likely to be offered discount prices for dental exams or for eye exams? Why?

Price Discrimination | When pricing automobiles, American car companies typically charge a much higher percentage markup over cost for “luxury option” items (such as leather trim, etc.) than for the car itself or for more “basic” options such as power steering and automatic transmission. Explain why.



When pricing automobiles, American car companies typically charge a much higher percentage markup over cost for “luxury option” items (such as leather trim, etc.) than for the car itself or for more “basic” options such as power steering and automatic transmission. Explain why.

Monopsony z | What is meant by the term “monopsony power”? Why might a firm have monopsony power even if it is not the only buyer in the market?



What is meant by the term “monopsony power”? Why might a firm have monopsony power even if it is not the only buyer in the market?

Monopoly | Why might a firm have monopoly power even if it is not the only producer in the market?



Why might a firm have monopoly power even if it is not the only producer in the market?

Monopoly z | Why is there no market supply curve under conditions of monopoly?



Why is there no market supply curve under conditions of monopoly?