economics

ECO 510 Module Four Critical Thinking Guidelines and Rubric Price discrimination is a pricing strategy whereby a firm’s prices for the same or very similar goods vary for customers in d ifferent markets. This can help the firm attain more profits compared to charging a single price. For example, a movie theater may offer a discount to students but charge non -students a higher price. Suppose you are a consultant to Southwest Airlines. How would you use price discrimination to get the most profits from your customers? Use the concepts from Module Four, including total revenue, marginal revenue, total cost and marginal cost, and the theory of profit maximization to argue your strategy. Do you have to be a monopoly to engage in price discrimination? Explain. Guidelines for Submission: Your response should be one to two pages in length with double spacing, 12 -point Times New Roman font, one -inch margins, and APA citations. Instructor Feedback : This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more in for mation, review these instructions . Critical Elements Exemplary (100%) Proficient (90%) Needs Improvement (70%) Not Evident (0%) Value Price Discrimination for Profits Submission meets “Proficient” and gives multiple examples of applying price discrimination Clearly explains how one would use price discrimination to get the most profit from customers Attempts to explain how one would use price discrimination to get the most profit from customers, but is not clear Does not explain how one would use price discrimination to get the most profit from customers 30 Strategy Argument Submission meets “Proficient” and uses numerical expressions to illustrate the application of the various concepts Presents a strategy argument that includes the concepts of total revenue, marginal revenue, total cost and marginal cost, and the theory of profit maximization Presents a strategy argument that uses some of the following concepts: total revenue, marginal revenue, total cost and marginal cost, and the theory of profit maximization Does not present a strategy argument for using price discrimination 30 Monopoly Question Submission meets “Proficient” and includes examples to support explanation Clearly explains why one does or does not have to be a monopoly to engage in price discrimination Attempts to explain why one does or does not have to be a monopoly to engage in price discrimination , but is not clear Does not explain why one does or does not have to be a monopoly to engage in price discrimination 20 Course Vocabulary Meets “Proficient” and integrates the course vocabulary into all aspects of the case study Applies vocabulary for the economic topic throughout case study Lists some vocabulary or phrases, but it is not connected to the context of the questions Does not include economic vocabulary 10 Articulation of Response Submission is free of errors related to grammar, spelling, syntax, and organization and is presented in a professional and easy -to-read format Submission has no major errors related to grammar, spelling, syntax, or organization Submission has major errors related to grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Submission has critical errors related to grammar, spelling, syntax, or organization that prevent understanding of ideas 10 Earned Total 100%