A perfectly competitive firm cannot practice price discrimination because
A) each consumer in a perfectly competitive market has the same willingness to pay.
B) the firm can only charge the market price.
C) a firm that breaks even in the long run cannot afford to engage in yield management.
D) it does not advertise; this prevents the firm from marketing its product to different segments of the market.
B
You might also like to view...
Sam decides to buy a $75 ticket to a particular New York professional hockey game rather than a $50 ticket for a particular Broadway play. We can conclude that Sam:
A) is relatively unappreciative of the arts. B) obtains more marginal utility from the play than from the hockey game. C) has a higher "marginal utility to price ratio" for the hockey game than for the play. D) has recently attended several other Broadway plays.
The First Welfare Theorem holds that the allocation of goods resulting from competitive prices is "efficient," which is the equivalent of "equitable."
Answer the following statement true (T) or false (F)