Firms that engage in price discrimination
a. will earn less profit than those that do not discriminate.
b. will earn more profit than those that do not discriminate.
c. are biased against certain buyers in the market.
d. will always produce less output than firms that do not discriminate.
B
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The BLS reported that the CPI in July 2010 was 226 . This news tells you that _______
A. consumer prices during July were 226 percent higher than they were during the base year B. the CPI inflation rate in July was 26 percent a year C. consumer prices rose by 26 percent during the month of July D. the prices of consumption goods and services have risen, on average, by 126 percent since the base year
When considering perfect competition the absence of entry barriers implies that
A) no firm can enter the industry. B) firms can enter but cannot get out of the industry easily. C) all firms will earn economic profit. D) firms can enter and leave the industry without serious impediments.