What is one reason car dealerships might move away from perfect price discrimination to uniform pricing?
A) Perfect price discrimination doesn't work.
B) Transaction costs erode the profit of perfect price discrimination.
C) Consumers are ill-informed and tend to complain too much.
D) Uniform pricing is always more profitable and more fair as well.
B
Economics
You might also like to view...
Economic growth is severely impeded in economies
A) with a lack of clear property rights. B) with high rates of convergence. C) which encourage induced innovation. D) with a strong market system.
Economics
Define imputed rental income. Is imputed rental income taxed? Based on your answer, discuss the tax code treatment of homeowners and renters on equity grounds
What will be an ideal response?
Economics