On July 12, 2012, Hertz charged $ 126.12 to rent a Nissan Altima for one day in New York City, but only $ 55.49 a day in Miami. Is this price discrimination? Explain.
Answer to relevant QuestionsIf a monopoly faces an inverse demand function of p = 90 – Q, has a constant marginal and average cost of 30, and can perfectly price discriminate, what is its profit? What are the consumer surplus, total surplus, and ...Does a monopoly’s ability to price discriminate between two groups of consumers depend on its marginal cost curve? Why or why not? A monopoly has a marginal cost of zero and faces two groups of consumers. At first, the monopoly could not prevent resale, so it maximized its profit by charging everyone the same price, p = $ 5. No one from the first group ...Joe in Question 5.3 marries Susan, who is also an enthusiastic golfer. Susan wants to join the Northlands Club. The manager believes that Susan’s inverse demand function is p = 100 – 2q. The manager has a policy of ...In most “normal” years (years in which the market has not been disrupted by Middle East wars), at each Organization of Petroleum Exporting Countries (OPEC) meeting, Saudi Arabia, the largest oil producer, argues that the ...
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