Why might it be a bad idea to engage in first-degree price discrimination?
A. Price discrimination is illegal and can lead to lawsuits and lost customers.
B. The information needed does not exist and scarce resources should not be used searching for it.
C. Price discrimination in any form is not viable for most companies as a way to increase profits.
D. The information needed can be costly and can lead to decreased profits for the company.
Answer: D
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Which of the following would not be considered an automatic stabilizer?
A. Defense spending B. Income tax C. Welfare payments D. Unemployment compensation
Michael Woodford says the following is an advantage of interest-rate instruments for central banks
A) Conduct monetary policy without inflation. B) Conduct monetary policy even if checking deposits pay interest at competitive rates. C) Conduct monetary policy without government approval. D) Conduct monetary policy with consumers in mind. E) Conduct monetary policy with workers in mind.
As cities prospered and per-capita incomes increased, the demand for bus travel diminished. This suggests that:
A. cities could raise revenue by increasing bus fares. B. the demand for bus travel is price elastic. C. bus travel and automobile travel are complements. D. bus travel is an inferior good.
It is _____ that in the classical model, prices and wages are fixed; it is _____ that according to the classical economists, full employment is the norm.
A. true; true B. false; false C. false; true D. true; false