Which case below best represents a case of price discrimination?
A. An insurance company offers discounts to safe drivers
B. A major airline sells tickets to senior citizens at lower prices than to other passengers
C. A professional baseball team pays two players with identical batting averages different salaries
D. A utility company charges less for electricity used during "off-peak" hours, when it does not have to operate its less-efficient generating plants
B. A major airline sells tickets to senior citizens at lower prices than to other passengers
You might also like to view...
A regulatory agency concerned with "universal service" must
a. prevent high profits in all markets. b. prevent entry in high-profit markets. c. prevent cross-subsidization. d. guarantee marginal cost pricing.
Social Security transfers wealth from younger generations to older generations
a. True b. False Indicate whether the statement is true or false
A government policy of providing free public education is an example of a policy to promote economic growth by:
A. increasing the availability of natural resources. B. increasing human capital. C. improving technology. D. increasing physical capital.
Process innovation refers to:
A. development of new products. B. implementation of better methods of producing products. C. first discovery of new scientific principles. D. widespread imitation of innovations.