The textbook refers to a study of odd pricing, the results of which were termed inconclusive. The text authors, however, claim that the study “does provide some evidence that using odd prices makes economic sense” (page 520). Is this conclusion valid? Why or why not? More generally, are pricing strategies such as odd pricing, price discrimination, cost-plus pricing, and two-part tariffs valid, ethical economic strategies? Why or why not?
What are the optimal conditions for the creation of a monopoly? Is the antitrust policy of the United States successful in manipulating conditions to prevent the formation of monopolies? Why or why not? Is it always beneficial to prevent the formation of a monopoly? Why or why not?
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