Which firm is most likely to be able to engage in price discrimination?
a. a small retailer selling common household goods
b. one of only three firms in a specialized industry
c. a fast food chain with many competitive rivals
d. a business that just entered a market and has little customer data
b. one of only three firms in a specialized industry
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Which of the following statements regarding the marginal product curve is FALSE?
A) Increasing marginal returns occur only when the total product increases as the number of workers increases. B) Increasing marginal returns is due to greater efficiency from specialization in the production process. C) The law of diminishing returns applies in the short run. D) Along the marginal product curve, increasing marginal returns occur first and then diminishing marginal returns.
Explain why cable television is not a pure private good
What will be an ideal response?
Suppose a currency's value in the foreign exchange market is determined solely by market supply and demand without any intervention by the government authority, the currency has
A) a fixed exchange rate. B) a gold standard. C) a price control in its exchange rate. D) a floating exchange rate.
If a firm experiences economies of scale,
a. it moves up along the long run average total cost curve. b. expansion of output becomes more expensive for the firm. c. the firm can reduce its per unit cost by producing less. d. the firm must shut down in the long run. e. the firm can reduce its per unit cost by expanding production.