The strategy underlying price discrimination is to
a. charge higher prices to customers who have better access to substitutes.
b. charge everyone the same price but limit the quantity they are allowed to buy.
c. increase total revenue by charging higher prices to those with the most inelastic demand for the product and lower prices to those with the most elastic demand.
d. reduce per-unit cost to the firm by charging higher prices to those with the most inelastic demand and lower prices to those with the most elastic demand.
C
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If Sam can chop up more carrots per minute than Joe can, then
a. Joe has an absolute advantage in carrot chopping b. Joe must have a comparative advantage in carrot chopping c. Sam has an absolute advantage in carrot chopping d. Sam must have a comparative advantage in carrot chopping e. we can conclude nothing about absolute advantage
If the expected rate of return on investment spending increases, the investment spending function _____
a. shifts upward b. shifts downward c. rotates upward d. rotates downward
Nobel-laureate economist Milton Friedman suggested that policymakers strive to ensure that the monetary aggregates:
A. grow at a rate equal to the rate of real growth plus the desired level of inflation. B. remain constant in terms of dollar amounts. C. grow at a rate equal to the rate of real growth less the desired level of inflation. D. grow at a rate equal to the rate of inflation.
Assuming transaction costs are small, the Coase theorem would predict that private parties could arrive at an efficient solution for which of the following problems?
a. One neighbor doesn't mow his lawn. b. One neighbor doesn't paint her house. c. One neighbor comes home on his noisy motorcycle late at night. d. All of the above are correct.