Posted: July 12th, 2016

In what respects are the following common practices subtle (or not-so-subtle) forms of price discrimination?

A: Which is a better measure of the economics of welding, the way welds are currently charged or Amy Miller’s proposed method?
B: What assumption is Amy Miller building into her proposed method?
C: Would Amy Miller’s proposal increase the company’s income, or would it only decrease the stated cost per frame?

Assume that all welds are of the same length and depth, requiring the same amount of welding time each.

In what respects are the following common practices subtle (or not-so-subtle) forms of price discrimination?

a. Frequent-flier and frequent-stay programs
b. Manufacturers’ discount coupon programs
c. A retailer’s guarantee to match a lower competing price.

Address the the questions and please explain throughly for better understanding.