Assume a firm organizes all individuals by their willingness to pay (least to most). If the firm starts to perfectly price discriminate, what is likely to happen?
A) Consumers start to arbitrage amongst themselves.
B) The firm's profits will be maximized.
C) The firm's costs will be minimized.
D) The firm starts to arbitrage with consumers.
A
You might also like to view...
Bob and Bill can make 16 toys each if they devote 8 working hours in a day. Further, Bob can repair 4 cars and Bill can repair 2 cars, if they devote 8 working hours in a day. What is the opportunity cost of repairing one car to Bill?
a. 10 toys b. 8 toys c. 16 toys d. 12 toys e. 4 toys
If you have a choice between consuming bundle X or bundle Y, the opportunity cost of consuming bundle X is bundle Y
a. True b. False Indicate whether the statement is true or false
If world markets change so that the U.S. dollar is no longer the primary reserve currency, the exchange rate value of the dollar would rise
Indicate whether the statement is true or false
Which of the following statements is not correct?
A. In large measure, economics is the study of how people make choices. B. Economic analysis can be used to explain how both individuals and societies make decisions. C. If poverty were eliminated, there would be no reason to study economics. D. Economics is a behavioral science.