Pricing is influenced by desired net income, competitive position, and market structure (Cleverley, Cleverley, & Song, 2012). Desired net income, is the starting block for most short- and long-term pricing decisions. Net income is the difference between revenues and expenses (Cleverley, Cleverley, & Song, 2012). In the business world, there must be enough revenue in sales of products and services in order to maintain the business. If prices are not controlled, the business could suffer greatly.…
The advanced pricing technique that would be most appropriate for a Sam’s Club or Costco would be second degree price discrimination. Second degree price discrimination is defined by Thomas and Maurice (2010, p. 583) as, “When a firm offers lower prices for larger quantities and lets buyers self-select the price they pay by choosing how much to buy.” Therefore, when the same consumer buys more than one unit of a good or service at a time the marginal value placed on consuming additional units declines as more units are consumed (Thomas & Maurice 2010). In addition, second degree price discrimination reduces the average price as the amount purchased increases.…
Retrieved from http://www.aafp.org/media-center/releases-statements/all/2013/scope-of-practice.html Dewar, D. (2010). The Competitive Market. In Essentials of Health Economics. (pp.71-74). Sudbury, MA: Jones and Bartlett Publishers.…
Health care disparities have been an issue that is of great interest to public health professionals. Several efforts have been made in efforts to reduce the existing health disparities. Health care disparities are politically sensitive issues and because they are interlaced with race relations, it poses a threat to achieving an overall healthy population. The issues of health care disparities are deeply rooted in socio economic status, culture, access to health care services, utilization of healthcare services, utilization of preventative care, genetics and other social determinants of health. David Satcher presents evidence of this problem where he writes “African American men have the greatest rate of lung cancer from smoking, and both African…
Honda is engaging in price discrimination and the possible rationale for the firm to charge high price in one market and vice versa due to difference in elasticities. There is a probability that in Canada people have elasticity of demand that is the reason, price charged is lower and quantity is higher. Where as in Japan, people have relatively less elasticity for Honda cars where they are willing to pay more for it, consequently higher price and lower quantity. Additionally there is some level of business sector power by Honda due to which Japanese individuals are not willing to move their interest to some other brand. (Keat, Young & Erfle, 2013)…
The American Indians and Alaska Natives are racial/ethnic minorities with special needs regarding disparities in accessing health care services. To understand the unique challenges faced by this population, consider that the suicide rate is fifty percent higher than that of the white Americans (Hays, Carroll, Ferguson, Fore, & Horton, 2014). Moreover, the author reported that the rate of substance abuse, mental health issues, and underfunding for health care in their communities are further staggering in rural areas. Shi and Singh (2019) noted that health care delivery for this group has had health care delivered in various ways due to the Indian Health Care Improvement Act and the Indian Health Service.…
Healthcare price elasticity can be defined as the amount of product and/or services that are needed or need (the demand for such supplies) to be produced in order to properly vendors. There is typically 3 main factors that may could affect the demand of elasticity: availability, income (the amount of money that can and cannot be spent), and time. Prescription drugs would be an increase in price elasticity in healthcare, as well as any price adjustment in healthcare and/or new technology. A decrease in healthcare elasticity would be considered as insurance plans and how benefits are offered with coinsurance and deductible, plus the amount of premiums one might have to pay. One other example that I would consider a decrease in elasticity would be the cost difference between seeing a Doctor vs. a Physician Assistant.…
For example, if I purchase forty rolls of paper towel from a wholesale distributer the price per item could be two dollars, but when I purchased one single roll of paper towel at a retail store the price per item could be four dollars. Even with the purchase of Movie Theater tickets price discrimination occurs. The price of movie tickets vary depending on the age of the consumer. This is considered third-degree price discrimination. Usually children and senior citizens tickets are cheaper than an adult ticket.…
For this case, we summarized everything into 3 namely: (1) Raise selling prices of nutrition supplements and nondurable gloves charged to cash and carry customers such that these products will comply with the 120% rule, (2) reduce selling prices of nutrition supplements and nondurable gloves charged to government program customers, and (3) attempt to establish “good cause” using Customer Profitability Analysis. The first alternative aims to adjust the price charged to cash & carry customers such that the 120% rule will be achieved. We recognized that adjusting the price for cash & carry customers will have an impact to the profit of the company, but the impact might not be adverse since sales from such customers is only 25% of the…
Price discrimination Price discrimination or price differentiation is a pricing strategy where transactions are identical or similar to the goods or services at different prices for the same provider in different markets or territories. It is selling the same product with different prices for different consumers. Airlines industry defiantly using the price discrimination strategy, for example, if a person bought a ticket two days before the trip, the airlines company will give this customer a higher price. unlike someone who bought a ticket before the flight by two months, because the first person is in need of travel as fast as possible so he will be ready to pay even if the price is high. There is a difference also in the prime time, when…
Although the material has been interesting to read I will say the two that really grabbed my attention where fraud and inequalities in healthcare. Amazed that there is no substantial jail time associated with fraud or danger with loss of license if the crime of fraud is committed. Not to mention how unfair the healthcare system can be in determining eligibility. In both topics causing the wrong individual to benefit. With all crime in healthcare it seems as if the culprit only experiences minor punishment in comparison to other crimes.…
In the United States, the federal government accounts for over fifty percent of health care spending. The health care industry in the United States is heavily regulated by the federal government in an effort to improve access to patient care for all Americans while also preventing fraud, waste, and abuse of such a limited resource. Another very important reason that that health care industry is not a free market is due to third-party payer system. The U.S. health system is a free market for voluntary health services that are non-essential to good health. Competition in the market give an indication that the health system has the potential to be a free or market-based system.…
The Second Degree Price Discrimination best fits Sam’s Club or Costco. The advance pricing technique here focuses on selling to a particular targeted market. There are substitutes as well as having items in bulk. The best approach her is applying the quantity discount model to come to the conclusion of Second Degree Price…
Also the graph shows that buying in the last minute is costly more than when it was set up because prices are higher on average just as flights open and just before they close, this price discrimination allows airlines to sell more expensive seats to those who can’t wait, and cheaper tickets to those who can.…
From an economics perspective, the market for airport parking in the city of Melbourne would be a monopoly (assuming that this is limited to the parking that is a part of Tullamarine airport). A monopoly is defined to be a market type where is only one firm operating with absolute market power, with no close substitutes and a large barrier to entry. Firms operating in this market are required to have proximity to the airport, with a large area available for cars to park, and the resources to monitor and ensure the security of these vehicle. These factors require both significant capital and government approval beforehand – ensuring that entry into the market is near impossible. As other firms are unable to enter the market, the sole firm operating…