Price discrimination requires:
a. a firm to be a competitive firm.
b. a firm to be able to segment its customers based on different price elasticities of demand.
c. arbitrage.
d. that the product can be easily resold.
b
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Which of the following actions by the Fed would increase the money supply?
a. Reducing the required reserve ratio. b. Selling government bonds in the open market. c. Increasing the discount rate. d. None of these.
Which of the following statements is true?
a. Monopoly results in smaller output and a higher price than would be the case under perfect competition. b. The monopolist produces at an output where P > MC and the marginal value to society of the last unit produced is greater than its marginal cost. c. The monopoly is not producing enough output from society's standpoint. d. Monopoly may lead to greater concentration of economic power and could retard innovation. e. All of these statements are true.
Disposable income is equal to
A. Consumption - saving. B. Personal taxes + personal income. C. Consumption + saving. D. Personal taxes - personal income.
If a 10-year Treasury bond pays 3.1 percent and a 10-year corporate bond pays 7.4 percent, what is the interest rate spread on this particular corporate bond?
A. 4.3 percent B. 7.4 percent C. 10.5 percent D. 22.9 percent