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Unformatted text preview: better through practicing price discrimination, why or why not? 4) State whether each of the following corresponds more closely to bundling or tying. a. Lift tickets at a ski resort. b. “Buy one get one free” offers. c. Purchase of cell phone minutes. d. Purchase of cell phone plans. (phone, minutes, text, web, etc. .) e. Sale of Windows operating system coupled with Explorer net browser. 5) When a firm successfully bundles what is the value of consumer surplus? What portion of total social welfare is acquired by the firm? 6) When firms are able to practice first degree price discrimination, bundling, or tying, what is the net effect on total social welfare? Do these practices help of hurt the consumer in comparison to the perfectly competitive market equilibrium?...
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This note was uploaded on 02/15/2011 for the course ECON 247 taught by Professor Bradberry during the Fall '10 term at CUNY Queens.
- Fall '10