A firm sells an identical product to two groups of consumers, A and B. The firm has decided that third-degree price discrimination is feasible and wishes to set prices that maximize profits
Which of the following best describes the price and output strategy that will maximize profits? A) PA = PB = MC.
B) MRA = MRB.
C) MRA = MRB = MC.
D) (MRA - MRB) = (1 - MC).
C
You might also like to view...
If the dollar appreciates from 1.5 Brazilian reals per dollar to 2.0 reals per dollar, the real depreciates from ________ per real to ________ per real
A) $0.67; $0.50 B) $0.33; $0.50 C) $0.75; $0.50 D) $0.50; $0.67 E) $0.50; $0.75
The various ways that vertical relationships can evade regulation include
a. tying the sale of a regulated good to a customer's choice of an unregulated good b. bundling regulated and unregulated goods c. preventing the exclusion of rival unregulated goods d. insuring tax rates are uniform across jurisdictions
In a properly functioning economy, money costs approximate opportunity costs
a. True b. False Indicate whether the statement is true or false
Between 1980 and 2005, the Vanguard Index Fund earned 12.3%/year, while the average mutual fund investor earned:
a. 1.9% b. 2.3%. c. 5.1%. d. 7.3%.