Often on airport, we pay higher price for a cup of coffee, which is available on cheaper rate inside the city, explain how the firm is able to charge two different prices for the same product? Discuss three essential conditions must be met, for a firm to engage in price discrimination.

Assignment Questions:

Q1. Finally, 6 years back, Albaik entered the Riyadh Market, though it was working successfully in other major cities of Saudi Arabia. Make a brief analysis of success story of Albaik in fast food industry in your city, taking following points into consideration. [ 7 points]
⦁ List major competitors of Albaik in your city.
⦁ Prepare a comparative list of popular products offered by Albaik and its competitors and their comparative prices.
⦁ How Albaik is managing their success with relatively lower prices?
⦁ In which type of market structure Albaik is working? justify your answer by explaining the features of that market structure.
⦁ Explain, what future you see for fast-food industry in your city.

Q2. Often on airport, we pay higher price for a cup of coffee, which is available on cheaper rate inside the city, explain how the firm is able to charge two different prices for the same product? Discuss three essential conditions must be met, for a firm to engage in price discrimination.

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