Firms that engage in price discrimination
a. will earn less profit than those that do not discriminate.
b. will earn more profit than those that do not discriminate.
c. are biased against certain buyers in the market.
d. will always produce less output than firms that do not discriminate.
b
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Microeconomics is the study of
A) aggregate measures of the economy. B) foreign policy economic issues. C) federal budget details. D) individual decision making.
What is an expansionary gap of real GDP? How is this expansionary gap eliminated in an economy?
When the price of fresh fish increases 10%, quantity demanded decreases 5%. The price elasticity of demand for fresh fish is ________ and total revenue from fresh fish sales will ________.
A. inelastic; decrease B. inelastic; increase C. elastic; decrease D. elastic; increase