Issues in Liner Shipping explains the nature and the pricing methods in container shipping namely average cost

Question

Issues in Liner Shipping, explains the nature and the pricing methods in container shipping, namely average cost

pricing, marginal cost pricing, and price discrimination. In each of the following situations, identify the most relevant pricing method(s) and justify your answer.

a) The liner shipping company has substantial market power in the region it serves but demand for container shipping is low.

b) Demand for container shipping is high but there are a number of competitors in the market offering similar services.

Microeconomics