Price discrimination exists when
A. sales are made below cost.
B. each buyer is treated equally.
C. a firm charges different buyers different prices for its product but the costs are the same.
D. a firm charges each buyer a price of the product in proportion to its costs.
Answer: C
You might also like to view...
Suppose that nuclear power plants are banned. What are examples of the opportunity costs of this decision?
What will be an ideal response?
In some markets consumers may buy many different brands of a product. Which of the statements below best represents a situation where demand for a particular brand would be very elastic?
A. "I pinch pennies in buying other products, but like most people I feel I owe it to myself to get the best brand of this product." B. "The brand I buy is so superior to other available brands that I hardly consider the others." C. "The different brands are almost identical so I always buy the cheapest." D. "I use so little of that product that when I do buy it, I don't pay much attention to the price."
Under present U.S. federal law, which one of the following is a government-inhibited good?
A. cocaine B. medical care C. education D. housing
If the price of airline travel in Mexico falls, and the demand for train travel in Mexico also falls, then the two goods are
A. normal goods. B. inferior goods. C. substitutes. D. complements.