Which of the following would NOT be considered price discrimination?
A. charging more money for long distance calls during business hours than on weekends
B. giving students a discount on ski lift tickets
C. charging higher rates for oil delivery to people who live farther from your business
D. charging less money to wash a large luxury car than a small economy car
Answer: C
You might also like to view...
A difference between moral hazard and adverse selection is that
a. moral hazard deals with pre-contractually determined public information b. moral hazard deals with post-contractually determined private information c. adverse selection deals with pre-contractually determined private information d. adverse selection deals with post-contractually determined public information
What do monopolistic competition, pure monopoly, and perfect competition have in common?
a. free entry b. long-run economic profits c. differentiated product d. price taking e. the rule of profit maximization
If you deposit $20,000 in cash into a demand deposit account at a bank that faces an 18 percent required reserve ratio the result will be:
a. the bank will add $3,600 to its excess reserves. b. the bank will add $16,400 to its excess reserves. c. the bank will add $16,400 to its total reserves. d. the bank will add $20,000 to its excess reserves.
A perfectly competitive firm is producing a good at a level where P = $30 and MC = $30. The firm will continue to produce in the short run as long as:
A. AVC is less than $30. B. AFC is less than $30. C. price does not increase. D. ATC is greater than $30.