"Price discrimination is the same as price differentiation." Do you agree or disagree? Why?
What will be an ideal response?
Disagree. Price discrimination is the act of selling a given product at more than one price but no difference in marginal cost. In contrast, price differentiation is the act of selling a given product at more than one price in order to reflect differences in marginal bost.
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When the dollar depreciates, the cost to Americans of foreign goods
A. rises and the CPI falls. B. rises and the CPI rises. C. falls and the CPI rises. D. falls and the CPI falls.
Barbara is willing to loan $10,000 if she can earn a real interest rate of 6 percent. Everything else the same, if the inflation rate is 2 percent, she would agree to loan the $10,000 if the nominal interest rate is ________ because ________
A) 8 percent or higher; she would not earn her desired amount of 6 percent if the nominal interest rate was any lower B) 4 percent or lower; she would not earn her desired amount of 6 percent if the nominal interest rate was any higher C) 8 percent; she would earn more than her desired amount of 6 percent D) 8 percent or lower; she would not earn her desired amount of 6 percent if the nominal interest rate was any higher E) 4 percent or higher; she would not earn her desired amount of 6 percent if the nominal interest rate was any lower
If a one-year bond is purchased for $700 and the interest rate is 5 percent, what will it pay in one year?
A) $35 B) $665 C) $735 D) $770
In the long run, the entry of new firms into a competitive market is typically caused by
a. government regulation b. technological innovation c. inflation d. economic losses e. economic profit