The strategy underlying price discrimination is
a. to charge higher prices to customers who have good substitutes available to them and lower prices to customers without many substitutes available to them..
b. to charge everyone the same price but limit the quantity they are allowed to buy.
c. to increase total revenue by charging higher prices to those with the most inelastic demand for the product and lower prices to those with the most elastic demand.
d. to reduce per-unit cost by charging higher prices to those with the most inelastic demand and lower prices to those with the most elastic demand.
C
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The slope of a production possibilities frontier that displays increasing opportunity cost is
A) positive and constant. B) negative and constant. C) steeper near the horizontal intercept than near the vertical intercept. D) steeper near the vertical intercept than near the horizontal intercept.
When we say that money is a stock variable, we mean that
A) the quantity of money is measured at a given point in time. B) we must attach a time period to the measure. C) it is sold in the equity market. D) money never loses purchasing power.
A World View article, "The Female 'Inequality Trap,'" says that in many poor nations the "… returns on female human capital investment is low." When women are not allowed to work outside the home or to receive an education, this is referred to as
A. An inequality trap. B. A productivity trap. C. A prejudice gap. D. A justice gap.
Explain the economic concept of convergence
What will be an ideal response?