Price discrimination, where different units of a good are sold for different prices
A) is impossible because there can only be one market price.
B) can be effectively practiced by all monopolists.
C) maximizes consumer welfare because each consumer pays only the price he or she is willing to pay.
D) is possible if the good cannot be resold.
D
You might also like to view...
An external cost in the production of a good creates a difference between the
i. costs borne by the producer and the costs borne by society in general. ii. efficient quantity of output and the equilibrium quantity of output. iii. marginal social cost and the marginal private cost. A) i only B) iii only C) ii and iii D) i, ii, and iii E) i and iii
Why is it important that consumers respond differently to temporary and permanent increases in their incomes?
A) This implies that consumption will be highly sensitive to temporary changes in income. B) This implies that a temporary tax cut will have a larger effect than a permanent one on current consumption. C) this tells us that the timing of income increases for consumers is irrelevant. D) this has implications for the relative effects of temporary and permanent tax cuts.