Consider the following actions undertaken by a firm:
a. charging a higher price for products of higher quality
b. charging different prices to different consumers for the same product when the variation cannot be explained by cost differences
c. charging different prices for products of different qualities
d. charging a lower price to match a competitor's price
Which of the above will be considered price discrimination?
A) a, b, c, and d B) a, b, and d only C) b and d only D) b only
D
You might also like to view...
During the late 1800s and early 1900s,
(a) American society clearly recognized the value of labor in the profit process. (b) U.S. legislation and courts of law appeared hostile to the interests of organized working employees. (c) society, at large, generally favored the efforts of workers to combine into unions to negotiate with employers. (d) organized labor had a stable and respected place in politics.
The table below shows how the marginal benefit of car washes varies for Carol with the number purchased per month.Car washes per monthMarginal benefit of purchasing an additional car wash1$6.002$5.003$4.004$3.005$2.00The price of each car wash is reduced from $2.99 to $1.99. Assuming that the price of a car wash accurately reflects the marginal cost to Carol and that she is rational, she will increase the number of car washes purchased per month from:
A. one to two. B. two to three. C. three to four. D. four to five.