Price discrimination by a firm is
a. illegal under all circumstances.
b. legal if the firm can show that the difference in the prices charged customers is justified by a difference in the costs of serving them.
c. legal if the firm can show that the demand for its good is relatively elastic.
d. legal under all circumstances.
b
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Most researchers agree that the New Deal positively impacted
(a) employment and overall production. (b) wages, working conditions and working hours. (c) electricity production and use of it as power. (d) all of the above.
Instituting a rent control program will most likely lead to
A) a shortage of rental units. B) overly elaborate and expensive construction. C) an efficient allocation of existing units among consumers. D) an excess quantity supplied of rental units.
A consequence of adverse selection for the insurance market is that:
A. risk-seeking individuals typically pay higher premiums than risk-averse individuals. B. everyone ends up paying higher premiums. C. risk-averse individuals typically pay higher premiums than risk-seekers. D. everyone ends up paying lower premiums.
Under perfect price discrimination,
a. equilibrium quantity and consumer surplus are the same as under perfect competition b. equilibrium quantity is greater and consumer surplus is the same as under perfect competition c. equilibrium quantity and consumer surplus are less than under perfect competition d. equilibrium quantity is the same but consumer surplus is less than under perfect competition e. equilibrium quantity is less but consumer surplus is the same as under perfect competition