In theory, price discrimination
a. Reduces the number of consumers who purchase the firm's product
b. Decreases producer surplus
c. Decreases consumer surplus
d. Has no effect on deadweight loss
c
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Explain the difference between a negative production externality and a negative consumption externality
What will be an ideal response?
Saving is
a. helpful for production but not necessary b. not useful for production because they imply a decrease in consumption c. required for production d. not useful for production because it is not a resource e. not useful for production because savers must be paid interest
Interest is the payment for the use of funds
a. True b. False Indicate whether the statement is true or false
A firm derives revenue from two sources: goods X and Y. Annual revenues from good X and Y are $10,000 and $20,000, respectively. If the price elasticity of demand for good X is ?2.0 and the cross-price elasticity of demand between Y and X is 1.5, then a 4 percent increase in the price of X will:
A. increase total revenues from X and Y by $400. B. increase total revenues from X and Y by $800. C. decrease total revenues from X and Y by $400. D. increase total revenues from X and Y by $8,000.