Use the Following to Answer Question

question 22

Multiple Choice

Use the following to answer question:
Table 10.3
-(Table 10.3) Suppose that Fender is trying to practice indirect price discrimination through versioning. It plans to offer the cheaper American Standard version of its guitar for consumers who are highly price-sensitive and the more expensive American Deluxe version to those who are not. To be incentive-compatible Fender should charge _____ for the American Standard and _____ for the American Deluxe.

• A) $800; $1,599
• B) $900; $1,001
• C) $999; $1,499
• D) $1,119; $1,750

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Definitions:

Family Bonds

Emotional connections between family members that provide support, love, and a sense of belonging.

Parental Monitoring

The actions taken by parents to be aware of their children's activities, peers, and whereabouts to guide their behavior.

Psychological Control

A form of manipulation that aims to influence or control another's behavior through psychological means rather than through direct coercion.