Answer to Question #130292 in Microeconomics for Zain Abid

Question

Pick up atleast 3 life examples of professionals (doctors ,engineers ,teachers ) and explain how do they maximize their return by charging discriminated prices ?

Answer 1

Professionals may maximize their returns through offering discriminated prices. In the case of doctors, they may offer discriminatory prices when dealing with insured and uninsured patients. Patients without an insurance cover are charged more compared to the insured, which would allow doctors to maximize their returns. Engineers offer discriminatory prices through charging customers differently based on the number of services provided. Customers requiring fewer services are charged higher than those who need more services. On the other hand, teachers may offer price discrimination through considering the number of units students require. For instance, in case a student is to learn one unit at a time, he/she is likely to be charged more than a student who takes several units at once.