Which of the following industries is most likely closest to achieving perfect price discrimination?
A) the airline industry
B) the wheat industry
C) the textbook industry
D) the toilet paper industry
E) the soft drink industry
A
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Which of the following individuals is most likely to purchase a life insurance policy that pays out an annual income beginning at a certain age until the individual's death?
A) Alma, who expects to live a long life, based on her family history B) Avril, a tax attorney who wants to avoid adverse selection C) Bradley who has six young children D) Ian, who expects to have a short life expectancy because of an illness
If the money rate of interest is 15 percent and the real rate of interest is 5 percent, the inflationary premium is
a. zero. b. 5 percent. c. 10 percent. d. 15 percent.
Jill likes lobsters but she does NOT eat lobsters in every meal. How can utility theory explain this?
What will be an ideal response?
A utility-maximizing consumer equalizes marginal utilities per dollar spent across all goods
Indicate whether the statement is true or false