If an airline chooses to practice price discrimination to increase profit, it will:
a. charge higher fares to those with a more elastic demand.
b. charge higher fares to those with a less elastic demand.
c. determine a fare for each passenger according to the costs of serving the passenger.
d. charge everyone the same fare.
Ans: b. charge higher fares to those with a less elastic demand.
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A point lying to the northeast of the production possibilities frontier is
A) unattainable. B) efficient. C) inefficient. D) profitable.
If import restrictions prohibit foreigners from selling various goods in the U.S. market,
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