The reason that the local telephone company is able to engage in price discrimination between business and residential customers in providing local phone service is that:
A. it is the only provider of local (landline) telephone service.
B. it must be extremely difficult, if not impossible, for one consumer to resell phone service to another.
C. business and residential customers differ in their willingness to pay for phone service.
D. All of these are correct.
Answer: D
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Why are Federal Reserve Notes (U.S. dollar bills) money in the U.S? Because
A) they are backed by gold. B) they are used as a general medium of exchange. C) they are created by the government. D) they would otherwise be useless. E) of all the above reasons.
According to the Fisher effect, if a lender and a borrower would agree on an interest rate of 8 percent when no inflation is expected, they should set a rate of _______ when an inflation rate of 3 percent is expected
a. 2 percent b. 5 percent c. 8 percent d. 11 percent
To adjust from Net National Product to Gross National Product:
a) Add depreciation b) Deduct indirect taxes c) Add subsidies d) Add inflation
Refer to the accompanying figure, which shows the market for cups of coffee. At the original market equilibrium:
A. 50 cups are sold per hour at a price of $1.00 each. B. 60 cups are sold per hour at a price of $1.50 each. C. 40 cups are sold per hour at a price of $2.00 each. D. 50 cups are sold per hour at a price of $2.50 each.