If Happy Babies sells its baby formula in the United States for $10 box and for $12 (dollar equivalent) a box Canada, this is an example of ________.
A) second-degree price discrimination
B) third-degree price discrimination
C) peak-load pricing
D) two-part pricing
B) third-degree price discrimination
You might also like to view...
Suppose a competitive market with adverse selection has settled into a pooling equilibrium where everyone is offered the same price. If full markets are re-established through signals, the new equilibrium will be more efficient than the original pooling equilibrium.
Answer the following statement true (T) or false (F)
Assume that Chile can produce one pound of coffee or 40 pillows in an hour, and that the United States can produce one pound of coffee or 20 pillows in an hour,
a. the terms of trade should be between 20 and 40 pillows per pound of coffee, and the United States should produce both coffee and pillows b. the terms of trade should be between 20 and 40 pillows per pound of coffee, and Chile should produce pillows c. the terms of trade should be between 20 and 40 pillows per pound of coffee, and Chile should produce coffee d. the terms of trade should exceed 40 pillows per pound of coffee, and Chile should produce coffee e. no trade will occur, since the United States does not have an absolute advantage in producing either good
A linear specification, Q = aK + bL, is not appropriate for estimating a production function because
A. the firm could produce positive levels of output at zero cost. B. the marginal products of the inputs are assumed constant. C. it does not allow the firm to substitute capital for labor. D. both b and c E. all of the above
The productivity speed-up in the United States began in the
A. mid-1970s. B. mid-1980s. C. mid-1990s. D. beginning of 2001.