Sellers who charge different prices to different customers can increase their net revenue
A) by forcing some customers to pay more for the product than it is worth to them.
B) by getting high-price customers in effect to subsidize sales to low-price customers.
C) if the demand of some customers for the product enables the sellers to build volume by selling at prices below marginal cost.
D) if they can prevent customers from reselling to one another.
D
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The mechanism of supply and demand is
A. a fundamental tool in both microeconomics and macroeconomics. B. the only real “law” of economics. C. a fundamental tool only in microeconomics. D. a fundamental tool only in macroeconomics.
Asymmetric information can cause a market to go out of existence
Indicate whether the statement is true or false
Which of the following is not an example of a business operated by a consumer cooperative?
a. grocery store b. apartment building c. Sunkist, a farm cooperative owned and operated by citrus growers d. health plan e. electric power facility
If government regulators force a natural monopoly to produce where price equals marginal cost, the monopoly will earn
a. a "fair return" b. positive economic profit c. zero economic profit d. negative economic profit e. greater economic profit than if it were unregulated