Question: Please me with this L1. [22 marks] Dynamic pricing uses automation to help retailers adjust their prices in near real time. Amazon for instance, changes

Please me with this

L1. [22 marks] Dynamic pricing uses automation to help retailers adjust their prices in near real time. Amazon for instance, changes prices up to 2.5 million times per day. Many online retailers leverage dynamic pricing in their online sales. They use your purchase history, location, and even your search history to adjust your prices. Suppose retailer ABC is a single price monopolist that wants to start using dynamic pricing. a. [8 marks] How can ABC increase its profit by using the new pricing strategy? b. [8 marks] What is the effect of this pricing strategy on total surplus in ABC's market, assuming no externalities? c. [8 marks] Claim: allowing ABC to charge different prices to customers only benefits ABC. True, False or Uncertain? Explain your reasoning

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