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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 different 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 information, review these instructions.

Critical Elements

Exemplary (100)

Proficient (90)

Needs Improvement (70)

Not Evident (0)

Value

Price Discrimination

Submission meets "Proficient"

Clearly explains how one would

Attempts to explain how one

Does not explain how one

for Profits

and gives multiple examples of

use price discrimination to get

would use price discrimination

applying price discrimination

the most profit from customers

to get the most profit from

customers, but is not clear

customers

Strategy Argument

Submission meets "Proficient"

Presents a strategy argument

Does not present a strategy

and uses numerical expressions

that includes the concepts of

that uses some of the following

argument for using price

to illustrate the application of

total revenue, marginal

concepts: total revenue,

discrimination

the various concepts

revenue, total cost and

marginal revenue, total cost

marginal cost, and the theory of

and marginal cost, and the

profit maximization

theory of profit maximization

Monopoly Question

Submission meets "Proficient"

Clearly explains why one does

Attempts to explain why one

Does not explain why one does

and includes examples to

or does not have to be a

does or does not have to be a

or does not have to be a

support explanation

monopoly to engage in price

discrimination

discrimination, but is not clear

discrimination

Course Vocabulary

Meets "Proficient" and

Applies vocabulary for the

lists some vocabulary or

Does not include economic

integrates the course

economic topic throughout case

phrases, but it is not connected

vocabulary

vocabulary into all aspects of

study

to the context of the questions

the case study

Articulation of

Submission is free of errors

Submission has no major errors

Submission has major errors

Submission has critical errors

Response

related to grammar, spelling,

syntax, and organization and is

syntax, or organization

syntax, or organization that

presented in a professional and

negatively impact readability

prevent understanding of ideas

easy-to-read format

and articulation of main ideas

Earned Total

100