How is price discrimination treated under antitrust laws?
What will be an ideal response?
Price discrimination involves charging different prices to different groups based on certain characteristics such as age. This practice is not illegal because it often promotes competition and contributes to consumer welfare. It is illegal in those cases when it is used as a means of blocking the entry of a new business or to drive out competitors.
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Each regional Federal Reserve Bank is owned by
A) the member banks in its district. B) the Federal Deposit Insurance Corporation. C) those who purchase its stock on the open market. D) the taxpayers in its district.
A sudden increase in the market demand in a competitive industry leads to
a. Losses in the short-run and average profits in the long-run b. Above average profits in the short-run and average profits in the long-run c. New firms being attracted to the industry d. Demand creating supply