What is price discrimination? Can a perfectly competitive firm price discriminate? Explain you answer
What will be an ideal response?
Price discrimination is the practice of selling different units of a good or service for different prices. A perfectly competitive firm cannot influence the price of its product—it is a price taker. So a perfectly competitive firm cannot price discriminate.
You might also like to view...
Refer to Table 8-19. Given the information above, calculate the GDP deflator in 2016
A) 114 B) 105 C) 95 D) 87
Which of the following information about fiat money is false? Fiat money
A) has little to no value except as money. B) serves as a medium of exchange. C) is backed by gold. D) is authorized by a central bank or governmental body.
What do all expansions and recessions since 1950 have in common?
a. Changes in oil prices. b. Changes in interest rates. c. Changes in spending. d. Changes in productivity. e. None of the above.
From the perspective of households the uses of income are
A) taxes, saving, consumption of domestically produced and imported goods. B) taxes, investment, consumption of domestically produced and imported goods. C) taxes, saving, consumption, exports, and imports. D) None of the above.