If Samsung sells TVs at a higher price in the United States than in Korea, and if there is no cost difference in producing or transporting the TV sets, Samsung would be practicing
A) cartel pricing.
B) price discrimination.
C) simple monopoly behavior.
D) price differentiation.
Answer: B
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The federal government, in order to fund expanded health care, imposes a lump-sum tax on all business property. Profit-maximizing firms that stay in business will respond by
A. raising prices to pay the tax. B. cutting output to reduce costs. C. lowering prices to stimulate demand. D. doing nothing.
Which of the following could not possibly be included in the same market as Coke?
A) Pepsi B) Gatorade C) Milk D) Bread
The optimal mark-up is: m = -1/ (E+1). When the mark-up on cookware equals 50%, then demand elasticity (E) for cookware is:
a. -1 b. -1.5 c. -2 d. -3
The entry of new firms into a market will
a. increase the market demand curve b. make the existing firms' demand curves more elastic c. make the market demand curve less elastic d. shift the firm's demand curve to the right e. shift the market supply to the right