Price discrimination requires that different customers have different levels of price sensitivity and that
A. marginal costs are falling.
B. demand is homogeneous amongst customers.
C. customers cannot resell the product amongst themselves.
D. the cost of production is different for every customer.
Answer: C
You might also like to view...
The risk of a well-diversified portfolio depends only on the ________ risk of the assets in the portfolio
A) systematic B) nonsystematic C) portfolio D) investment
What is the aspect of imperfect competition that is most distinct from perfect competition?
A) free entry/exit B) perfect information C) differentiated products D) zero profits
When economists and government officials speak about the money supply, they usually mean M2
a. True b. False
If either the production or consumption of a good generates an external benefit, then the:
A. social demand curve will lie to the right of the private demand curve. B. social marginal cost of the good will equal zero. C. social marginal cost curve will lie to the left of the private marginal cost curve. D. social demand curve will lie to the left of the private demand curve.