Selling the same product under different brand names allows a firm to price discriminate as long as
A) customers know the products are identical.
B) customers do not know the products are identical.
C) the products really are not the same.
D) the firm lets customers know that the products are identical.
B
You might also like to view...
In the long run, a firm's producer surplus is equal to the
A) economic rent it enjoys from its scarce inputs. B) revenue it earns in the long run. C) positive economic profit it earns in the long run. D) difference between total revenue and total variable costs. E) difference between total revenue and total fixed costs.
A sofa manufacturer currently is using 50 workers and 30 machines to produce 5,000 sofas a day. The wage rate is $200 and the rental rate for a machine is $1,000. At these input levels, another worker adds 200 sofas, while another machine adds 500 sofas. If the firm uses 45 workers and 31 machines instead, then its
A. cost will be unchanged, and its output will increase by 300 units. B. cost will be unchanged, and its output will increase by 500 units. C. output will be unchanged, and its cost will decrease by $800. D. cost will be unchanged, and its output will decrease by 500 units. E. none of the above
Ceteris paribus, or "all other things held constant", is an assumption that had which of the following effects on a demand schedule?
a) It takes only prices into account b) It considers the effects of all possible changes on demand c) It is accurate no matter what changes occur d) It is accurate at only one price level
Multinational enterprises use transfer pricing to
A. lower prices of their products and gain market share. B. reduce their global tax burden. C. provide managers in a foreign affiliate with an incentive to maximize local profit. D. move products to the markets where the demand for those goods is relatively inelastic.