Consider the following actions undertaken by a firm:
a. charging a higher price for products of higher quality
b. charging different prices to different consumers for the same product when the variation cannot be explained by cost differences
c. charging different prices for products of different qualities
d. charging a lower price to match a competitor's price
Which of the above will be considered price discrimination?
A) a, b, c, and d B) a, b, and d only C) b and d only D) b only
D
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In 2012, the U.S. federal government had a budget deficit. If there is no Ricardo-Barro effect, the budget deficit ________ the real interest rate and ________ the equilibrium quantity of investment
A) lowered; increased B) raised; increased C) lowered; decreased D) raised; decreased E) did not change; did not change
The money supply will decrease if
A) either the monetary base or the money multiplier increases in value. B) either the monetary base or the money multiplier decreases in value. C) either the monetary base increases in value or the money multiplier decreases in value. D) either the monetary base decreases in value or the money multiplier increases in value.
Consider a country Atlantica, using dollars ($) as its currency. If this country sets a price for gold, and then issues currency such that the amount in circulation is equivalent to the value of gold held in reserve, it is said to be the following:
a. an exchange standard. b. a gold standard. c. a reserve currency standard. d. a crawling peg standard. e. a currency board standard.
Which of the following is true? a. Price leadership is a form of explicit collusion
b. Price leadership is more likely when there are a substantial number of roughly equally sized firms in oligopoly. c. A price leader is most likely to be a dominant firm in an industry. d. None of the above is true.