Why doesn't a firm price discriminate based on income levels?
A) It would be nearly impossible to conveniently confirm any individual's income level.
B) It is illegal to ask someone their income levels.
C) It is immoral to price discriminate based on income levels.
D) They do: It is common practice for firms to price discriminate based on income.
A
You might also like to view...
The aggregate production function shows a(n) ________ relationship between ________ and output
A) decreasing; capital stock B) decreasing; labor C) constant; labor D) increasing; capital stock
A tremendous flood along the Mississippi River destroys thousands of factories, reducing the nation's capital stock by 5%. What happens to current employment and the real wage rate?
A) Both employment and the real wage rate would increase. B) Both employment and the real wage rate would decrease. C) Employment would increase and the real wage would decrease. D) Employment would decrease and the real wage would increase.