In order to practice price discrimination, the firm must
a. offer a good at different prices to different segments of the market
b. first establish a monopoly position in the market
c. make sure the practice is sanctioned by the government
d. select a price so that different segments of the market will demand different quantities
e. first collude with the other firms in the industry
A
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The process by which an increase in government borrowing results in less borrowing by businesses and consumers for private investment is called
A. expansionary fiscal policy. B. the business cycle. C. crowding out. D. contractionary fiscal policy.
If the government tried to implement a total ban on pollution: a. output prices would decrease
b. output prices would increase. c. production would increase. d. production would be unchanged.
Entry of new firms in monopolistically competitive industries can convey a negative externality on producers because firms lose customers and profits from the entry of new competitors. This externality is called the
Disposable personal income is the income that
a. households have left after paying taxes and non-tax payments to the government. b. businesses have left after paying taxes and non-tax payments to the government. c. households and noncorporate businesses have left after paying taxes and non-tax payments to the government. d. households and businesses have left after paying taxes and non-tax payments to the government.