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ECO 301: Pricing with Market Power

Horizontales
Pricing that comes from market power such as that of the four national cellular networks
Maximum price that a customer is willing to pay for a good
Charging higher prices during peak periods
Discrimination where customers are separated by demand functions
Can further increase profits
Practice of charging different prices to different customers for similar goods
Practice of charging different prices per unit for different quantities of the same good or service
Issued to allow customers buy products at discounts
Refers to any requirement that products be bought or sold in some combination
Verticales
The consumer is charged different prices for different quantities or "blocks" of goods
Difference between what a consumer is willing to pay and the amount actually paid
Bundling where two or more goods are sold both as a package and individually
Form of pricing in which consumers are charged both an entry and a usage fee
Selling products only as a package
Practice of dividing customers into two or more groups with separate demand curves and charging different prices to each group
Practice of selling two or more products as a package
Price discrimination that occurs when each customer is charged exactly what they are willing to pay
Percentage change in quantity demanded resulting from a one percent increase in advertising expenditures