When firms price discriminate they
A) sell to new consumers who would not have bought at the profit-maximizing uniform price but lose sales to existing consumers because of the higher prices.
B) sell to new consumers that would not have bought at the profit-maximizing uniform price.
C) lose surplus from consumers who would have bought at the profit-maximizing uniform price.
D) None of the above.
B
You might also like to view...
The publisher that paid Arthur Arthur, the popular novelist, a $2 million advance on his recent novel, which sold only 42 copies, fell victim to
a. moral hazard b. an authority relation c. the winner's curse d. the principal-agent problem e. adverse selection
During a period when new entrants are being attracted to an industry, we would expect that: a. economic profits are positive
b. as a result, economic profits are falling. c. as a result, economic profits are rising. d. both (a) and (b) are true.
All of the following are characteristics of a perfectly competitive market, except one. Which is the exception?
a. a large number of sellers b. a standardized product c. no barriers to entry d. sellers can easily exit the market e. an intensive rivalry among the sellers
After reports of the subprime mortgage crisis began to appear in the media, which of the following most likely caused housing prices to fall?
a. neoclassical theory b. cyclical expectations c. rational expectations d. Keynesian theory