Price discrimination is a rational strategy for a profit-maximizing firm when
A) it is possible to engage in arbitrage across market segments.
B) there is no opportunity for arbitrage across market segments.
C) it is not possible to segment consumers into identifiable markets.
D) firms want to increase the amount of consumer surplus received by its customers.
B
Economics
You might also like to view...
Technological change
A) generates economic growth. B) shifts the PPF leftward. C) creates inefficiency. D) Both answers A and C are correct.
Economics
Cindy's Sweaters' production function is shown in the above table. Cindy rents two knitting machines for $30 a day each and hires workers at a wage rate of $40 a day. If Cindy produces 18 sweaters per day, what is her average total cost?
A) $6.67 B) $10.00 C) $11.00 D) $13.33
Economics