The strategy underlying price discrimination is to:
a. charge higher prices to customers who have better access to substitutes.
b. charge everyone the same price but limit the quantity they are allowed to buy.
c. increase total revenue by charging higher prices to those with the most inelastic demand for the product and lower prices to those with the most elastic demand.
d. reduce per-unit costs by charging higher prices to those with the most elastic demand and lower prices to those with the most inelastic demand.
c
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If the supply of iPods increases, then
i. the supply curve for iPods has shifted rightward. ii. the price of iPods has decreased. iii. there will be a movement upward along the iPod supply curve. A) i and iii B) i only C) i and ii D) i, ii and iii E) ii and iii
Other things constant, when households decide to save more, the supply of credit ________ and interest rates ________
A) falls; rise B) falls; fall C) rises; rise D) rises; fall
An increase in consumer confidence would shift the:
A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward.
When a firm experiences declining long-run average total costs as it produces more output, there are
A) increasing marginal returns to variable inputs. B) economies of scale. C) diseconomies of scale. D) constant returns to scale.