Why are seniors charged less for coffee at mcdonalds

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Principles of Economics
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Chapter 20 / Exercise 2
Principles of Economics
Mankiw
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22. Why are seniors charged less for coffee at McDonald's than younger people? What kind of monopolist is McDonald's? A) McDonald's wants to avoid ageism lawsuits; McDonald's is an absolute monopolist B) McDonald's earns higher profits by charging seniors less; McDonald's is a price-discriminating monopolist. C) McDonald's discovered that younger people have a more elastic demand for coffee than seniors; McDonald's is a price-discriminating monopolist. D) McDonald's earns higher profits by charging seniors less; McDonald's is an absolute monopolist.
Use the following to answer questions 23-24. Use the following table to answer the question(s) below. Table: Christie' and Sotheby's Sotheby's Strategies High Commission Low Commission Christie's High Commission$4 million, $4 million$2 million, $6 millionStrategies Low Commission$6 million, $2 million$3 million, $3 million
We have textbook solutions for you!
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Principles of Economics
The document you are viewing contains questions related to this textbook.
Chapter 20 / Exercise 2
Principles of Economics
Mankiw
Expert Verified
23. (Table: Christie' and Sotheby's) Each cell of this table presents the revenues earned by the auction houses, Christie's and Sotheby's. Revenues are based on the type of commission each firm charges its clients, as well as what commission the other charges. Christie's revenues are listed first in each cell, then Sotheby's. If both firms cooperate and act like a cartel
24. (Table: Christie' and Sotheby's) Each cell of this table presents the revenues earned by the auction houses, Christie's and Sotheby's. Revenues are based on the type of commission each firm charges its clients, as well as what commission the other charges. Christie's revenues are listed first in each cell, then Sotheby's. Christie's dominant strategy is ______ and Sotheby's dominant strategy is ______.
Use the following to answer questions 25-27. Uber is a start-up tech company that allows subscribers to hail taxi cabs from an app on their smartphones. The taxi cabs are just regular cars whose owners offer their services in exchange for a cut of the cab fare. The cars and the drivers are often not licensed under municipal taxi regulations. Uber's dynamic pricing system can evaluate how much demand there is for cabs in a particular area and raise the fare prices accordingly. Before Uber, most cities' cab industries were heavily regulated and dominated by a few firms. Use this information to answer the following questions about Uber.

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