Assignment
The idea that transactions in a marketplace work like an invisible hand is to some extent the idea that when a person chooses to buy an item at a given price, they are happy with the deal. There is no coercion. If the person really does not like the deal, they simply walk away.
This discussion will give you an opportunity to explore direct and indirect price discrimination within the context of a hypothetical scenario.
Instructions
For this discussion, use the following hypothetical scenario as the basis for your response:
o Your business partner is strongly opposed to your proposal to charge your largest customers lower prices for your web-based services than what you will charge your smaller customers. She is arguing it is unethical, unfair, and possibly illegal.
Address the following in your discussion post:
A. Make a case that both groups of customers will be satisfied with the deal and that this is a perfectly legal form of pricing in a business-to-customer relationship.
a. What degree is this type of price discrimination?
b. How will the plan increase revenue?
c. Why will both groups of customers be satisfied with the deal?
d. Why is this a legal form of pricing?
Format your homework according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.