Price discrimination takes place when a firm
A) charges the same price for all the units of its product that it sells.
B) charges different prices for different units of its product.
C) is discriminated against by consumers.
D) None of the above answers is correct.
B
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According to this Application, some economists noticed that the change in the value of the U.S
dollar was largely due to the change in interest rates, and the change in interest rates occurred because of the Fed's use of ________ to further stimulate the economy. A) quantitative easing B) open market purchases C) open market sales D) discount operations
In the Keynesian aggregate expenditure graph (Figure 5-5), the 45 degree line is meant to indicate that:
a. planned aggregate expenditure always equals aggregate income. b. savings must equal investment. c. actual aggregate expenditure must equal aggregate income. d. actual income must equal planned income. e. none of the above.
The fact that when the price of a good goes up, people buy less of it is known as the
A) law of supply. B) law of demand. C) concept of market equilibrium. D) need for inferior goods.
Assume a monopolistically competitive firm is producing at an output level at which marginal revenue is $15 and marginal cost is $18. The profit-maximizing firm should
A. raise output. B. lower output. C. keep output constant. D. The firm should take none of these actions.