What are the different types of price discrimination?
What will be an ideal response?
There are three different types of price discrimination. They are:
a) First-degree price discrimination: Consumers are charged the maximum price they are willing to pay.
b) Second-degree price discrimination: Consumers are charged different prices according to the characteristics of their purchases.
c) Third-degree price discrimination: Different groups of consumers are charged different prices for the same good or service.
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What is a nonrival good? Give an example
What will be an ideal response?
For a monopolistic competitive firm, which of the following is TRUE in the long run?
A) ATC is minimized. B) Economic profit is zero. C) P = MC. D) all of the above
In the natural gas industry, recent technological improvements and the use of fracking have
a. increased the demand for natural gas, causing its price to rise. b. increased the supply of natural gas, causing its price to decline. c. reduced the demand for natural gas even though the proved reserves of the resource have fallen. d. resulted in sharply higher natural gas prices because of the dangers that accompany fracking.
Which statement is false?
A. During the 19th century the main cash crops grown in the South were cotton, rice, sugar, and tobacco. B. The only real economic conflict between the North and the South before the Civil War was over slavery. C. It took most parts of the South about a century to recover economically from the effects of the Civil War. D. Southern agriculture developed very differently from agriculture in other regions of the nation.