Really? I happen to have one right now. It cost me $300 two years ago, and I'll sell it to you for $800 since you are willing to pay double iPod price.
This new fantastic product is called an "iPod" and it matches all of your requirements.
Wow, I could make a lot of money selling this thing to all those music professionals you talk of.
The situations you are describing are all possible because they bring out a degree of monopoly. There is no such thing as a perfectly competitive market, it only exists in theory. Therefore, many markets fall somewhere between perfect competition and complete monopoly. Those that are more competitive are less likely to do rebates because firms in all markets have some degree of the ability to set prices. In a fish market, however (for example), you are very unlikely to find rebates or coupons. We assume free information and homogeneous products. People represent a very very small percentage of the total market, and buy or sell by the going rate. If your price is below the market price, you will stand to gain profit. If your price is above the market price, you will sell absolutely nothing. Everybody has a single price at the going rate. In perfect competition, you "see" only a very very very small quantity of the demand curve, so it appears horizontal, or perfectly elastic. You either sell everything or nothing. In this case, price discrimination would never work because there is no point in setting two different prices.
But I think you proved that my statement was very dumb, although correct. While its true that price discrimination only works in monopolistic situations, almost every situation we deal with has some form of monopoly. As you stated, driving represents a barrier which can segment markets and gives each firm their own "turf" on which they can set prices.
Yes, coupons, rebates, matinee movies, senior discounts are all examples of price discrimination.
Price discrimination only "works" on monopolistic situations because of the downward sloping demand curve (they face the entire buyer's market, unlike competitive markets which are price takers) When this happened, they increase their revenues by pushing their revenue area (Price X Quantity) higher up into what some consumers are willing to pay but otherwise keep because of standard prices (consumer surplus, aka "warm fuzzy feeling")
Abuse of monopoly power, I'm not so sure. I am definitely against rebates because for many of them you don't get to read their conditions until after you have bought your item. You know its there when you buy it but don't know how much of a pain in the ass it will be (depending on the conditions).
Personally, I buy things assuming I'm not going to get any money back.
It is pushing it quite a bit to say x86 involves upgrading your entire system as well.
The case, power supply, hard drives, and optical drives can generally stay, even when an entire processor-motherboard-video card-memory system has to be changed. PATA is still supported on pretty much all new motherboards in addition to SATA. Those parts are about $150-$400 which don't have to be upgraded. It's hardly low enough to consider insignificant when comparing a mac upgrade and a pc upgrade.
The difference between solar and oil, is that there truly is more solar than we'll ever need. By the time solar energy runs out, the earth will either by engulfed in flames, or plunged into a permanent freeze (not sure which, I think both).
By that point, the human race won't have much more use for solar energy on earth, because hopefully we would have other places to go.
But you are correct in saying that technically solar energy is not renewable.
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What's the problem here?
Main Entry: reputed
Function: adjective
1 : having a good repute : REPUTABLE
2 : being such according to reputation or general belief
-Merriam-Webster
The worst kind of grammar nazi is a wrong grammar nazi.
Really? I happen to have one right now. It cost me $300 two years ago, and I'll sell it to you for $800 since you are willing to pay double iPod price.
This new fantastic product is called an "iPod" and it matches all of your requirements.
Wow, I could make a lot of money selling this thing to all those music professionals you talk of.
I'm not sure that zombifying Bush would help him in his presidency all that much. ...
Then again...
The situations you are describing are all possible because they bring out a degree of monopoly. There is no such thing as a perfectly competitive market, it only exists in theory. Therefore, many markets fall somewhere between perfect competition and complete monopoly. Those that are more competitive are less likely to do rebates because firms in all markets have some degree of the ability to set prices. In a fish market, however (for example), you are very unlikely to find rebates or coupons. We assume free information and homogeneous products. People represent a very very small percentage of the total market, and buy or sell by the going rate. If your price is below the market price, you will stand to gain profit. If your price is above the market price, you will sell absolutely nothing. Everybody has a single price at the going rate. In perfect competition, you "see" only a very very very small quantity of the demand curve, so it appears horizontal, or perfectly elastic. You either sell everything or nothing. In this case, price discrimination would never work because there is no point in setting two different prices.
But I think you proved that my statement was very dumb, although correct. While its true that price discrimination only works in monopolistic situations, almost every situation we deal with has some form of monopoly. As you stated, driving represents a barrier which can segment markets and gives each firm their own "turf" on which they can set prices.
Yes, coupons, rebates, matinee movies, senior discounts are all examples of price discrimination.
Price discrimination only "works" on monopolistic situations because of the downward sloping demand curve (they face the entire buyer's market, unlike competitive markets which are price takers) When this happened, they increase their revenues by pushing their revenue area (Price X Quantity) higher up into what some consumers are willing to pay but otherwise keep because of standard prices (consumer surplus, aka "warm fuzzy feeling")
Abuse of monopoly power, I'm not so sure. I am definitely against rebates because for many of them you don't get to read their conditions until after you have bought your item. You know its there when you buy it but don't know how much of a pain in the ass it will be (depending on the conditions).
Personally, I buy things assuming I'm not going to get any money back.
Thank you, Internet.
Without you, I wouldn't know what happened this year. You are truly the cure for my long-term memory loss.
Every pound of it weighs 10,000 pounds!
It is pushing it quite a bit to say x86 involves upgrading your entire system as well.
The case, power supply, hard drives, and optical drives can generally stay, even when an entire processor-motherboard-video card-memory system has to be changed. PATA is still supported on pretty much all new motherboards in addition to SATA. Those parts are about $150-$400 which don't have to be upgraded. It's hardly low enough to consider insignificant when comparing a mac upgrade and a pc upgrade.
The difference between solar and oil, is that there truly is more solar than we'll ever need. By the time solar energy runs out, the earth will either by engulfed in flames, or plunged into a permanent freeze (not sure which, I think both). By that point, the human race won't have much more use for solar energy on earth, because hopefully we would have other places to go. But you are correct in saying that technically solar energy is not renewable.
The architects, contractors, and construction workers of the Petronas towers in Kuala Lumpur simultaneously shout, "D'oh!"