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Price determination

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Usually, price determination is determined by supply and demand in a perfect market. But there are some circumstances that give the firm or producer the power to decide the price of their products. Such firms are said to possess the power of monopoly and hence can regulate their prices without any other external force. The restaurant in Stonington, Maine, can determine the price of their products (foods) without any other external force that can regulate them. Hence they own a monopoly power for food supply in Stonington.

Focusing on the Walt Disney World act of charging consumers prices based on their willingness to pay is the antitrust act. This is because such an act does not follow any business model of price determination. Any business is required by law to charge customers fairly and with trust. They were charging customers based on their willingness to pay means that some of the customers may be overcharged to pay for the customers who spent less than expected. Furthermore, such an act exploits customers since the law requires customers to pay the price that is relevant to the value of the product they are purchasing. This is not possible in such cases whereby customers will be charged based on their willingness to pay. Hence all businesses must operate with given prices for their product to ensure that they have not entered into antitrust dealings with customers.

I would not practice the travelers while adjusting prices for leisure travelers is also another form of customer exploitation. The business travelers are the returning customers of such an airplane, and the management of such an aircraft should understand that all customers should be treated with some equality, and the returning customers should be considered for the discount but not overcharging them. Focusing on the pricing by some airline management, there are several factors to consider to understand how they operate. One of the most significant powers that give them the freedom to charge unequal prices is monopoly power. Most of the airplane owns a given route, and hence there is no other consumer plain that can fly such routes with passages. Therefore for the passengers willing to travel, they have to adhere to the guidelines givens by the airline management.

The open-air market is also involved in price discrimination as they focus on selling their products based on the minimal amount of money that they will make a minimum profit. For instance, if the customer can pay the first quoted prices, then the sellers will accept the payment without more discussion on the price. In case the buyers complain about the amount to be overcharged, the sellers are in a position to reduce the amount with some percentage to make customers be able to pay such price. This is also price discrimination. In most cases, products such as clothes and shoes sold in open markets are sold at discriminated prices.

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