Managerial Economics and Strategy, 2/e

Questions

All exercises are available on MyEconLab; $\ast =answer$ [&\*|=|answer&] at the back of this book; $=use$ [&~bf~|eq|~norm~ ~normal~use~norm~&] of calculus may be necessary.

1. Conditions for Price Discrimination  

1. 1.1 In the examples in Table 10.1 , if the movie theater does not price discriminate, it charges either the highest price the college students are willing to pay or the one that the senior citizens are willing to pay. Why doesn’t it charge an intermediate price? (Hint: Discuss how the demand curves of these two groups are unusual.)

2. 1.2 As of 2015, the pharmaceutical companies Abbott Laboratories, AstraZeneca, Aventis Pharmaceuticals, Bristol-Myers Squibb Company, Eli Lilly, ­GlaxoSmithKline, Janssen, Johnson & Johnson, ...