For a firm to maximize total profits through price discrimination, it should
a. Charge a high price to consumers with an inelastic demand and low price to consumers with an elastic demand
b. Charge a low price to consumers with an inelastic demand and high price to consumers with an elastic demand
c. Charge the same price to both sets of consumers by maximizing at MR=MC on the elastic demand
d. Charge the same price to both sets of consumers by maximizing at MR=MC on the inelastic demand
a
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If a price ceiling on coffee is set above the market-clearing price, then
A) the quantity of coffee demanded will decrease. B) the quantity of coffee supplied will increase. C) the quantity demanded for coffee will increase. D) all of the above will occur. E) none of the above will occur.
________ is the ease with which a financial security can be exchanged for money
A) The face value B) The rate of return C) Risk D) Liquidity
Conducting expansionary monetary policy when the economy is at its long-run equilibrium causes the Phillips Curve to:
A. shift straight up. B. shift straight down. C. become less steep. D. become more steep.
In the long run, total spending affects ________, and output is determined by ________.
A. inputs and productivity; total spending B. prices; meeting demand at preset prices C. inputs and productivity; prices D. prices; inputs and productivity