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CB2: Business Economics Exam Prep (CB2)
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Module 7
Advanced Pricing Strategies
1
First-Degree Price Discrimination: Profit & Consumer Surplus
Calculate profit and consumer surplus under a scenario of first-degree (perfect) price discrimination.
2
Third-Degree Price Discrimination: Optimal Pricing and Profit Maximization
Calculate optimal prices and profits under third-degree price discrimination across segmented markets.
3
Profit Comparison: Price Discrimination vs. Single Price
Compute and compare total profit under price discrimination versus a single uniform price.
4
Peak-Load Pricing: Optimal Price Calculation
Calculate optimal prices under a peak-load pricing scheme with differing demand conditions.
5
Deterring Market Entry: Limit Pricing and Predatory Practices
Calculate the limit price to deter market entry and identify predatory pricing by comparing price to cost.
6
Optimal Two-Part Tariff Design
Calculate the optimal two-part tariff structure, consisting of a fixed fee and a per-unit price.
7
Optimal Bundling Strategies
Calculate profit-maximising bundle prices and compare the profitability of pure bundling versus separate pricing.
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Imperfect Competition and Strategic Behavior
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Market Failures and Government Intervention