A monopolist engages in price discrimination
A) by charging a higher price to consumers whose demand is more inelastic.
B) by charging a lower price when marginal cost is higher.
C) by charging a lower price to consumers whose demand is more inelastic.
D) by charging the same price to all consumers.
Answer: A
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In the example of the Nike running shoe, we see that
A) selling costs account for over half of a shoe's retail price. B) materials actually account for two-thirds of the retail price of the shoes. C) taxes account for one-quarter of the retail price of the shoes. D) production costs exceed selling costs by a wide margin. E) raw materials costs are by far the largest component of the total costs of producing the shoes.
If the federal funds rate is below the equilibrium federal funds rate, then the supply of reserves would be __________ than the demand for reserves and the banks would try to __________ reserves causing the federal funds rate to fall
A) greater than; lend B) greater than; borrow C) less than; lend D) less than; borrow
If the cross-price elasticity of demand for two goods is negative, then the two goods are substitutes
a. True b. False Indicate whether the statement is true or false
The largest and costly welfare program in the U.S. is:
a. Social Security. b. Medicaid. c. Medicare. d. Unemployment Insurance.