If we observe a firm engaging in price discrimination, it must be true that:
A. the firm is enjoying higher total profits than it would have earned if it charged a single price for the product.
B. the firm can identify the preferences of every customer it serves.
C. the firm earns higher profits per unit than it would have earned if it charged a single price for the product.
D. All of these are correct.
Answer: A
You might also like to view...
An industry in which economies of scale allow one firm to supply the entire market at the lowest possible cost is called a
A) legal monopoly. B) natural monopoly. C) single-price monopoly. D) one-firm monopoly.
In the vertical segment of the aggregate supply curve,
a. real GDP increases with increasing unemployment b. competition among producers for already-employed resources forces the price level downward c. the economy is at full employment d. producers are able to hire more workers at lower wages e. increases in real GDP come only at the expense of higher price levels