Managerial Economics accounting homework help
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Price discrimination occurs often, I look at it like if someone is dying to have a good or a service they will pay whatever just to get that good or service, so the seller have an advantage over that person to charge whatever for the best bid. When I think of this scenario. I am thinking of EBay, I really do not like EBay because when I have my mind on something, and I am bidding on it, they have the ability to make a 10.00 shoe go up to like a 50.00 shoe. For example, a friend of mine told me about a MK watch that was on EBay, I asked her to go and bid with me, so we could try to get the watch, the watch started at 50.00 I knew I was only going to pay no more than 75.00 so I had her bid 60 and I did 65, by the end of the bidding, the watch ended up going to over 100.00, so I opted out at that point. I was upset because I really wanted that watch, but they were able to keep the price up, because someone wanted that watch just as bad as I did.
In addition, I found an example that was revealed in pharmaceutical companies. The article stated that “Pharmaceutical companies, or what critics call “big pharma,†are often condemned for charging prices above marginal cost and price discriminating between different countries. Price discrimination is an attempt not only to recoup research and development costs, but also to make drug prices sensitive to different degrees of price elasticity—responsiveness of consumers to changes in price†(Bhanji, 2012).
Bahanji,S., (2012). Price Discrimination in Pharmaceutical Companies: The Method to The Madness. Retrieved from: https://www.hcs.harvard.edu/hghr/online/price-discrimination-method/.
Need 300 word reply to this over price Discrimination. Please use the reading material I provide as a price.
APA format and intext citation please.
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