What is the difference between price discrimination and other forms of discrimination?
What will be an ideal response?
Discrimination based on race or gender and other arbitrary characteristics is illegal under civil rights laws. Price discrimination generally is legal, although it could be illegal under the Robinson-Patman Act if its effect is to reduce competition in an industry. Price discrimination involves charging people different prices based on differences in their willingness to pay, when these differences are not due to differences in costs.
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According to the graph shown, at a price of $15, there is a:
A. shortage of 10.
B. shortage of 20.
C. shortage of 30.
D. surplus of 20.
The perfectly competitive model is most likely to apply to a labor market in which
a. many well-informed firms must negotiate with one dominant labor union b. there are a few firms, and they are uninformed about the attributes of each worker c. there are many workers currently in the market who must negotiate with one dominant firm d. there are many well-informed workers and firms, and each worker appears the same to firms e. one dominant labor union must negotiate with one dominant firm
Money is
a. the most liquid asset and a perfect store of value. b. the most liquid asset but an imperfect store of value. c. not the most liquid asset but a perfect store of value. d. neither the most liquid asset and nor a perfect store of value.
Which of the following will reduce the risk of equity (stock) investments?
A) The purchase of shares of a mutual fund that holds the stocks of many diverse corporations. B) All of the above. C) The purchase of shares in firms doing business in a wider variety of industries and markets. D) The purchasing and holding of equities over a lengthy period of time.