The idea behind price discrimination is
a. To be able to sell to high-value customers, who value the product most
b. To be able to sell to the marginal customers, who are indifferent about the purchase
c. To be able to sell to the low-value customers, who would otherwise not buy the product
d. To be able to sell to both high and low value customers at different prices
d
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The price of one nation's currency in terms of the currency of another nation is called the
A) IMF rate. B) fed funds ratio. C) exchange rate. D) discount rate.
Suppose when a car wash has 2 washing stations and 5 workers and is able to wash 100 cars per day. When it adds a third station, but no more workers, it is able to wash 150 cars per day. The marginal product of the third washing station is:
a. 100 cars per day. b. 150 cars per day. c. 5 cars per day. d. 50 cars per day.
Under a pure flexible exchange rate system, the rate that equates demand and supply in the exchange rate market will also lead to a balance of
a. merchandise exports and merchandise imports. b. current account transactions. c. capital account transactions. d. current and capital account transactions.
Which of the following is NOT a barrier to entry that would allow a monopolist to keep potential competitors out of its market?
A. The firm has government authorization to be a monopoly. B. The market price of the product is too high. C. The firm has a patent on the good or control over some resource required for the production of the good. D. Significant economies of scale exist.