Perfect price discrimination occurs when:
a. each customer is charged the maximum price that each is willing and able to pay.
b. two classes of customers are charged different prices as they have the same elasticities of demand.
c. senior citizens are offered restaurant discounts.
d. the firm sets MR < MC for each class of customers.
e. the firm charges same price to different customers so that it is equal to the equilibrium price.
a
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Refer to the scenario above. If Molly wins the auction by using her optimal bidding strategy, she will earn a surplus of ________
A) $0 B) $50 C) $14 D) $25
The amount of output produced with an additional unit of variable input is referred to as:
A) total product. B) average variable product. C) marginal product. D) average fixed product.
Another way of stating that investment is independent of real disposable income is to say that it is
A) inversely related. B) directly related. C) complementary. D) autonomous.
Technological change that affects the marginal products of high-skilled and low-skilled workers differently is called ________ technological change.
A. high-low B. capital-labor C. skill-biased D. marginal-productivity