Which of the following is FALSE about indirect price discrimination
a. The firm is able to identify each customer's willingness to pay
b. The firm is able to charge different prices to the different value customers
c. The firm is be able to prevent arbitrage
d. All of the above
a
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Manny's Bar-n-Grill is next door to a franchised fast-food restaurant near a busy freeway exit. Essentially, the menus, food quality, atmosphere, and service are equal at the two restaurants. Nevertheless, the nationally franchised restaurant can attract more customers, even though its prices are higher. This situation
a. indicates that people are irrational because it never makes sense to pay a higher price when a product is cheaper elsewhere. b. is one in which the national franchise provides uninformed consumers with valuable information that reduces their risk of being unsatisfied with the purchase. c. reflects the greater elasticity of supply for food at Manny's Bar-n-Grill relative to the nationally franchised restaurant. d. is inconsistent with the basic postulates that underlie the economic way of thinking.
Make a case for 360-degree performance evaluation based on the informativeness principle. What problems may be encountered from implementation of such a system?
What will be an ideal response?
The decision to smoke cigarettes is not subject to present bias because the health risks of smoking cigarettes are widely known.
Answer the following statement true (T) or false (F)
An increase in a per unit production tax ______ supply.
Fill in the blank(s) with the appropriate word(s).