2. (15 points) For each of the cases below, explain whether they represent a type of price discrimination or not and, if they do, which type.
- (a) (5 points) As you enter a store you see a sign saying "buy 2 get 1 free".
- (b) (5 points) A motel charges a higher price for a room to customers with dogs or cats than to
- customers with no pets.
- (c) (5 points) A cell phone provider offers corporate plans to businesses and individual plans to non-business customers.
Price discrimination is a situation of charging different price for an identical product from different persons. Monopoly... View the full answer
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(a) As you enter a store you see a sign saying "buy 2 get 1 free" is a part of second degree price discrimination . Buy 2... View the full answer