For direct price discrimination to work effectively
a. The low-valued customers should not be able to engage in arbitrage
b. You need to charge the same price to the different groups
c. Both groups should have the same elasticity of demand
d. None of the above
a
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Which of the following statements best expresses why economic efficiency should be society's first goal?
A. Efficiency maximizes total economic surplus and thereby allows other goals to be more easily achieved. B. Since the consensus on what is a fair distribution of goods is impossible, efficiency is the next best goal. C. People are not really concerned about the problems of the poor, so government must address them instead. D. Efficiency gives the poor an incentive to improve their economic status.
Which of the following is a stock variable?
A) money supply B) wealth C) public debt D) all of the above
When prices rise:
A) money supply tends to rise. B) menu costs tend to fall. C) consumers' purchasing power falls. D) money demand tends to fall.
In general, in the 19th century, America
(a) was a low tariff nation because it was believed that free trade brought specialization, efficiency and more rapid economic growth. (b) was a nation that kept its tariffs at about the same levels as England so as not to give the British an advantage. (c) was a high tariff nation which believed, from the days of Alexander Hamilton, that America's industry needed protection from the more industrially advanced England. (d) had a moderate level of tariffs, compared with England, whose main purpose was to provide the federal government with revenues.