Price discrimination occurs when a firm
A) charges customers different prices for different goods.
B) is able to sell different units of a good at different prices.
C) charges customers the same price for different goods.
D) can determine which of the many market equilibrium prices it will charge.
E) has a marginal cost curve that is horizontal.
B
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According to basic supply and demand analysis, when hurricane Katrina caused oil prices to rise, what happened to the equilibrium price and quantity of sport utility vehicles?
A. Equilibrium price and quantity both increased. B. Equilibrium price and quantity both decreased. C. Equilibrium price increased, and equilibrium quantity decreased. D. Equilibrium price decreased, and equilibrium quantity increased.
Compared to perfect competitors in the long run, oligopolists charge ______ prices and earn more ______.
Fill in the blank(s) with the appropriate word(s).