Topic10_Price Discrimination

Ex amusement park golf course ex amusement park golf

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EX: amusement park golf course EX: amusement park, golf course, telephone service. Pay a fee to play golf and then pay Pay a fee to play golf and then pay another fee for each game you play. Buying Polaroid Camera (entry fee) and Buying Polaroid Camera (entry fee) and pay for each film purchase (usage fee). 19
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Two-Part Tariff with a Single C Usage price = P* is set equal to MC Consumer $/Q Usage price P is set equal to MC. Entry price = T* , the entire consumer surplus. Firm captures all consumer surplus as profit T* MC P* D Quantity Q*= Competitive Q and hence DWL =0 20 Quantity Q*
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