SophiaPretty

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    Strayer,Devery,Harvard University
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    WalMart
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Category > Business & Finance Posted 05 Sep 2017 My Price 7.00

A (third-degree) price discrimination firm is currently

A (third-degree) price discrimination firm is currently selling its product to two groups of customers, A and B. The price elasticity on the part of consumer group A equals -3, while the price elasticity on the part of consumer group b equals -2. Accordingly, in order to increase profit, this firm should:

a. increase sales to group A and decrease sales to group B

b. decrease sales to group A and increase sales to Group B

c. maintain sales at current levels

d. all of the above are possible, as not enough information is provided to determine the optimal allocation of sales across the two groups

Answers

SophiaPretty
(5)
Status NEW Posted 05 Sep 2017 12:09 PM My Price 7.00

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