Customers are usually more willing to pay more for the first unit of a good they purchase than for the second, third, or subsequent units. This implies that
A) typical consumers are irrational.
B) firms are using non-linear price discrimination.
C) firms are unable to determine their customers' reservation prices.
D) typical consumers have a downward sloping demand curve.
D
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Where along the long-run average total cost curve will an efficient firm try to produce in the long run?
a. Along the downward-sloping portion when there are economies of scale because cost per unit of output is decreasing at that level of production. b. Along the upward-sloping portion when there are diseconomies of scale because a firm will sell more output at that level of production. c. When there are constant returns to scale because this is the minimum efficient level of production, and cost per unit of output is at its lowest.
Incentive-based regulations provide polluters no incentive to reduce pollution and are thus not used often.
A. True B. False C. Uncertain