Price discrimination occurs when a firm sells
A. a given product at different prices to different ethnic groups.
B. a given product at different prices when it is produced in different colors.
C. a given product at different prices unrelated to differences in cost.
D. a given product at different prices at different points in time.
Answer: C
You might also like to view...
Discuss and explain the relationships between the monopolist's demand curve, average revenue curve, and marginal revenue curve
What will be an ideal response?
Jim saw a decrease in the quantity demanded for his firm's product from 800 . to 600 . units a week when he raised the price of the product from $200 to $250 . What is Jim's own price elasticity of demand?
a. 1.29 b. 1 c. 0.25 d. 0.78
According to the graph shown, if this economy were to open to trade, domestic producers would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. transfer surplus in area BC to consumers.
B. transfer surplus in area BCD to foreign producers.
C. lose surplus in area BCD to foreign consumers.
D. receive additional surplus of BCD.
Which of the following is true of marginal revenue for a monopolist that charges a single price?
a. P = MR because there are no close substitutes for the monopolist's product. b. P > MR because the monopolist must decrease price on all units sold in order to sell an additional unit. c. P < MR because the monopolist must decrease price on all units sold in order to sell an additional unit. d. P = MR only at the profit-maximizing quantity.