Nabz Posted May 21, 2012 Report Share Posted May 21, 2012 I need a list of effects of price discrimination onto the producers and consumers but can't think of any, please list some out...thanks a lot in advance Reply Link to post Share on other sites More sharing options...
Dimitris Posted May 21, 2012 Report Share Posted May 21, 2012 i will tell you briefly:consumer's surplus is lost in all cases, producer gains surplus because he gains extra revenues (eg. in first degree the consumer pays exactly the price that he/ she is preapared to pay above point equilibrium) economies of scale for the producer, lowering the average cost..these are generally Reply Link to post Share on other sites More sharing options...
Nabz Posted May 21, 2012 Author Report Share Posted May 21, 2012 Thing is, the essay question is: "what are the effects of price discrimination onto the producers and consumers" and this question is worth 15 marks. I've mentioned those things as you said above with examples but now i can't think how i can actually provide more information prior to the question so that i do get around 15 marks rather than just scoring a 5 or a 6...What else do you suggest i should do ? Reply Link to post Share on other sites More sharing options...
Dimitris Posted May 21, 2012 Report Share Posted May 21, 2012 obviously it implies that it needs you to explain the types of price discrimination and then talk about the effects for getting more than 10 Reply Link to post Share on other sites More sharing options...
CkyBlue Posted May 21, 2012 Report Share Posted May 21, 2012 Don't you have a textbook or notes from class to fall back on? IBS is supposed to guide you through questions, not exactly answer them for you.There are many implications associated with price discrimination. Some of them are listed above, but here are some others.-producers can use profits made to invest in their firm, leading to economies of scale-producers can use price discrimination to provide more output for consumers-if it weren't for price discrimination, some people cannot afford some services, for example, lawyers/doctors providing their services for a very expensive cost to the weatlhy, whereas it is relatively cheap or even free to others. (the same applies to domestic universities charging to domestic and international students)-however, where some people get those low price benefits, others do not-people that would not pay for more output WOULD now because of 2nd degree price discrimination, as it is likely for prodcuers to charge lower prices as consumption risesThat's all I can think of right now, but you can expand on those points with some more examples and evaluate their effects. Reply Link to post Share on other sites More sharing options...
Nabz Posted May 21, 2012 Author Report Share Posted May 21, 2012 (edited) Well the essay question is divided into two parts: one where you explain the price discrimination (10 marks) which i've done with diagrams but then the second part is the evaluate part and i've mentioned the question above. Problem is, i can't think of other effects of it onto producers and consumers and also how i can improve the evaluation. So in total the essay is worth 25 marks EDIT: i have a textbook though it provides a very limited view onto the evaluation section plus my teacher was away for a week (as he had to go on a trip) and he gave us this essay to write so it was all upon us, to find the topic, read it, make notes and write an essay.. Edited May 21, 2012 by shad0wboss Reply Link to post Share on other sites More sharing options...
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