Each statement below may fit into one of the three boxes: 1) perfect price discr

Question

Each statement below may fit into one of the three boxes: 1) perfect price discrimination; 2) tying; or 3) bundling. Move the statements below into the most appropriate box; some statements may not be placed.

Please keep in mind that not all statements needs categorizing.

Each statement below may fit into one of the three boxes: 1) perfect price discrimination; 2) tying; or 3) bundling. Move the statements below into the most appropriate box, some statements may not be placed. Bundling Perfect Price Discrimination Tying In order to use a Remington brand shaver, Customers of the Charter Cable company, who want you must purchase a cutter blade that isto watch HBO channels, must subscribe to a premium sold separately from the shaver and is only sold by the Remington company channel package that includes HBO, Cinemax and Showtime channels Microsoft offers student discounts for its computer software products. Non-students pay higher prices. Suppose that at an auction of American art every buyer ends up bidding and paying a price equal to the maximum amount that they were willing to pay. Kohl's department store offers a 15% discount If you purchase a John Deere tractor, you get a every Wednesday to senior citizen shoppers. lot of things, including a seat, headlights, tires, an engine and more

Explanation / Answer

Ans:

In perfect price discrimination the seller charges each customer the maximum price that he is willing to pay.

Bundling means combining several products or services into a single comprehensive package and sale the entire package at a reduced price.

Under tying strategy in order to buy one product, the consumer must purchase another product .

Bundling Prefect price discrimination Typing Customers of the charter cable company who wants to watch HBO channels must subscribe to a premium channel package that includes HBO,Cinemax and Showtime channels Suppose that at an auction of american art every buyer ends up bidding and paying a price equal to the maximum amount that they were willing to pay. In order to use a Remington brand shaver you must purchase a cutter blade that is sold saperately from the shaver and is only sold by the Remington company.

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